10 Do’s and Don’ts While Processing Your Mortgage
Let’s discuss how to get your property from “under contract” to “closed”, as smoothly as possible!
Did you know that there are several critical things that you should not do while your new home loan is being processed? A misstep during the loan process could result in you not being able to close on the property. Here are some steps to take to make sure that you are able to close on your loan and get the keys!
Do not fail to disclose debts you owe (payments to the IRS, child support, alimony). If anything new shows up during the processing of your loan, it could change the circumstances of your loan.
Do not apply for new credit (i.e. Don’t let anyone run a credit check on you.)
Do not make major purchases, (i.e. furnish your home, buy a new car, truck, RV, boat or camper) before closing.
Do not co-sign a loan for anyone.
Do not close any existing credit or bank accounts
Do not stop paying your bills or get behind on your bills – even your mortgage, if refinancing.
Avoid changing jobs
Save your money until after closing, as you will need to have enough money for down payment, closing costs, and possibly reserves.
Do not borrow money or make bank deposits larger than your usual paycheck. If you must do so, make sure you keep a paper trail to document this.
Do not deposit cash into your bank accounts.
Not sure? Ask – Any major changes in person income, assets or debt can alter the terms of your mortgage offer or lead to loan denial. If you’re not sure how an action might affect your application, ask your loan officer for advice!