12 THINGS NOT TO DO WHEN OBTAINING A MORTGAGE LOAN

Buying or refinancing your home does not have to be scary or intimidating. With these tips, you will be ensured a smooth and efficient mortgage process.

If you’re new to getting a mortgage or are refinancing and just need a refresher, it’s important to keep some rules in mind as you go through the process to avoid any roadblocks. Luckily, most setbacks are totally preventable! Make sure you’re set up for success and follow these homebuying “don’ts.”

1. DO NOT change or quit jobs or become self-employed without talking to us first. We will need to verify your employment the day of closing.
2. DO NOT change your pay structure. We may need additional pay stubs. Additionally, make sure to keep all your financial documents, including all the pages with numbers even if they are blank.
3. DO NOT apply for new credit. We may have to pull credit again before closing and inquiries can lower your credit score. Inquiries into your credit include credit cards, furniture, appliances, vehicles, boats, cell phones, cable, alarm companies, etc.
4. DO NOT change your marital status. If this is unavoidable, let your loan officer know right away.
5. DO NOT deposit any sums into your bank account that cannot be documented thoroughly. We may need an additional printout prior to closing to show funds are available or items have closed.
6. DO NOT dispute any items on your credit report, even if settled or paid.
7. DO NOT charge up your credit cards even if you’re getting ready for the new house. Don’t make any large purchases. This could lower your credit score and increase your debt ratio.
8. DO NOT let your driver’s license expire. The notary at the title company requires current identification.
9. DO NOT skip payments on your current bill, even if it’s to save for your future home and keep all your accounts current. We might have to re-verify prior to closing.
10. DO NOT spend money from your checking account unless absolutely necessary. We may ask for additional printouts from your bank to check funds. Make sure you have enough money for your down payment, closing costs, and loan reserves.
11. DO NOT apply for other loans for another property. We check a system called MERS, which identified any loans you have applied for.
12. DO NOT put any gift funds into your account. Instead, first double check with us on the necessary procedures to do so.

Expect to hear from us throughout the process and be sure to provide any and all documents or items needed from you right away. This, in addition to the above “don’ts” will ensure a smooth and efficient mortgage process.

As with anything during the loan process, communication is incredibly important! If you must change jobs, apply for new credit, or do anything contradicting the rules above, be sure to let us know immediately. We can offer you guidance and help you make the best decision possible for your situation.

Bonus: DO NOT forget to enjoy your homebuying journey!