Amid the tightened lending standards among residential lenders it pays to prepare for the mortgage applications. By the time you are ready to buy or refinance the process will be much smoother if you follow the following 12 steps.
Top 12 List of Dos and Don’ts of Mortgage Applications
- DO NOT deposit any funds into your checking account without making a copy
- DO NOT move money around from account to account
- DO NOT go out car shopping, furniture shopping, or any other shopping that would run up credit cards
- DO NOT payoff debts until instructed to do so
- DO NOT change jobs, if at all possible
- DO NOT go on vacation or out of town, if at all possible
- DO NOT accept any cash gifts from family members (Borrowers – check with your Loan Officer first)
- DO NOT sell any personal items (Borrowers – check with your Loan Officer first)
- DO NOT take any cash advances on your credit cards or open new credit accounts
- DO save all paystubs, all bank statements and all quarterly investment or retirement statements
- DO continue to make all your payments on time (this includes mortgage payments even if the borrower is refinancing)
- DO ask questions regarding the loan process, programs, and fees; and be patient with your Loan Officer. He or she is trying his/ her best to help you to get through the process as quickly and as painless as possible.
By Andrew Watson