Buyer Do's:

Have everything ready and in one place. The Checklist is the first place to start your loan process. In today's environment, it is essential that you provide everything that is requested on The Checklist that applies to you. If you have any questions, please let us know. The underwriter (the person who gives the loan approval) will review everything that is provided to make sure it supports the information on your loan application. 

Be complete when you fill out your application. Please complete your two year residency and employment history.

Respond promptly to requests for additional information. Whenever a question arises, it is a result of the documentation provided. Therefore you may be asked provide more documentation. For an underwriter to approve a loan he or she must have all questions answered. Some examples of requests for additional documentation: providing a paper trail for large deposits, paper trail from loans from a 401k or banks statements gift donors.

Be prepared to explain derogatory items in your credit report. If you had an illness or a divorce where you missed or made late payments, or you have other instances of late payments or delinquencies on your credit report, be prepared to explain them. Be honest, and don't be nervous! The loan processor isn't judging you, they're trying to fill in all the blanks in their paperwork. 


Buyer Don'ts:

Don't make an expensive purchase. It may be tempting to order that new sofa for your soon-to-be living room, but its best to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewelry, or vacations until after the closing. Financing that furniture with a store credit card or even one of your own credit cards could jeopardize your credit worthiness during the time it means the most. Using cash to purchase big items can also create a problem because many banks take into consideration your cash reserve when approving your mortgage.

Don't get a new job. Lenders like to see a consistent job history. Generally, changing jobs will not affect your ability to qualify for a mortgage loan - especially if you are going to be making more money. But for some people, getting a new job during the loan approval process could raise some concern and affect your application.

Don't switch banks or move money around. As your lender reviews your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds. Changing banks or transferring money to another account - even if its just to consolidate funds - could make it difficult for the lender to document your funds.

Don't pay off any collection accounts. This may lower your credit scores and will create more paperwork. Any collections that need to be paid off can paid through escrow. 

Please call us if you have any questions.