The Dos & Don’ts of Getting a Mortgage
Bank statements, credit scores, interest rates, loan estimates: It can make you feel like you’ve hit quicksand on the home buying journey. Here are the most common reasons for encountering challenges. These “dos and don’ts” will help you cut through the noise and pave the way for a smooth and efficient mortgage process.
The Dos
Do make payments on all your existing credit accounts, even if it’s just the minimum amount.
Do continue using your credit card for normal day-to-day expenses, but avoid making any large purchases.
Do locate your bank statements, paystubs, tax returns and other financial documents. Your lender will require these documents initially, and may ask for updates during the process.
Do answer questions quickly, provide documentation when asked, sign documents right away, etc.
The Don’ts
Don’t apply for new credit, transfer any balances, open any new accounts, or close any accounts.
Don’t make any large purchases or increase your usual amount of spending on your credit cards.
Don’t cosign for anybody else’s home loan, car loan, student loan, signature loan or any other type of debt.
Don’t ignore your credit report. You must confirm the validity of each line item in your credit report. Reach out to your loan officer immediately if you feel any of the information in your credit report is incorrect.
Don’t make hasty spending decisions. Make sure you understand how each financial move you make could impact your credit profile.
Make any type of employment or compensation changes without consulting your loan officer.
Don’t deposit any cash into your bank account without first contacting us about documentation requirements to ensure they’re acceptable. Even if you don’t intend to use the funds for closing, an unusual or large deposit into your account could red flag your file and add work to the loan process.
Notify Your Loan Officer
If you plan to receive gift funds for the down payment or closing costs.
If you have a financial expenditure coming up during the loan process that will decrease your assets.
If you expect to get a raise or promotion or any other change to your employment status or pay structure.
If you will be traveling or out of town at any time during the process.
