Do’s & Don’ts of the Mortgage Process
Tips for a Smooth Home Buying ProcessBelow are a few reminders of “do’s and don’ts” that are helpful to know before you close on your loan.
DO ask donor(s) for gifted funds as soon as possible, if being used towards your down payment. Be sure to ask your Loan Officer about the necessary steps and documentation for gifts.
DO stay current on your payments. If you’re looking to refinance, make sure you’re still paying your mortgage on time; one late notice may invalidate your loan approval. The same goes for car payments, credit cards, student loans, and any other debt.
DO continue to use your credit as normal. Changing your pattern may raise a red flag, causing your credit score to go down.
DO wait to make a major purchase such as a new car, boat or appliance until after your loan has funded.
DO keep copies of all important financial documents: check stubs, W-2s, tax returns, bank and investment account statements, rental agreements, etc. If asked to provide any of this info, you’ll be ready!
DON’T keep cash in a safe or an overseas account if you plan to use these funds as a down payment. Inquire about how and when would be the best time to put funds into your U.S. bank account if needed.
DON’T close credit card accounts. Keeping accounts open after you have paid them off lowers your debt-credit ratio. If you close a credit card account, it may appear that your debt ratio has gone up.
DON’T apply for new credit or give your personal information to anyone else who might run your credit report. Multiple credit inquiries may hurt your score.
DON’T make career moves. Your mortgage lender must verify your employment, so it’s crucial to maintain your employment status.
DON’T make large deposits into your bank account unless 100% necessary. If you must, save the documentation showing where the funds came from.
My goal is to exceed your expectations and make clients for LIFE!
You can reach me at my office at (512) 593-6701 or by mobile at (512) 695-1795.