Not sure what to do before applying for a mortgage loan?
We’ve got you covered. Here are some things you should and shouldn’t do before applying for a home loan.
MORTGAGE DO’S AND DON’TS
DO…
- Availability – Keep your financial records close at hand in case updates are requested.
- Income – Be aware that underwriters typically verify your income and tax documents through your employer(s), CPA and/or IRS tax transcripts. Hold onto new paystubs as received.
- Assets – Continue saving incoming account statements. Keep all numbered pages of each statement. 8 of 8.
- Gifts – If you are receiving gift money from relatives, they’ll need to sign a gift letter (we will provide) and an account statement evidencing the source, which must be “seasoned” funds.
Understand that things have changed – Underwriters require more documentation than in the past. Even if requests seem silly, intrusive or unnecessary, please remember that if they didn’t need it, they wouldn’t ask.
DON’T…
Apply for new credit – Changes in credit can cause delays, change the terms of your financing and even prevent closing. If you must open a new account (or even borrow against retirement funds), please consult with me first.
Change jobs during the process – Probationary periods, career or even status changes (such as from a salaried to a commissioned position, leave of absence or new bonus structure) can be subject to very strict rules.
Make undocumented deposits – Primarily for large but sometimes even small deposits must be sourced unless they are identified. Make copies of checks and deposit slips. Keep your deposits separate and even small. Avoid depositing cash.
Wait to liquidate funds from stocks or retirement accounts – If you need to sell investments, do it now and document the transaction. Don’t take the risk that the market could move against you leaving you short of funds to close.
Ever be afraid to ask questions – If you are uncertain about what you need or what you should do, I’m here to help you through the process, even long before you intend to buy.
