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07.08.16

Preparing for Your Mortgage Approval

The “Do’s & Don’ts” of the home loan process

With the increased federal and state regulations governing today’s mortgage financing, both lenders and borrowers are having to work within tighter guidelines. To improve your experience, here are some helpful tips and good habits you should keep in mind to help secure a successful loan approval.

Good Habits: DO’s

Pay Bills On Time

Keep paying your bills on time including any mortgage, car, credit cards, etc. even if they’re being paid through the new loan.

Inform of Employment Changes

Please inform us in advance of any employment or income change.

Keep Pay Stubs

Keep copies of all pay check stubs you receive between now and your loan closing.

Going Out of Town?

Please call us if you are going out of town or planning a vacation so we can plan accordingly for your loan process.

Potentially Harmful: DON’Ts

Don’t change your employment or pay scale.

Even if it seems good, this could endanger your loan approval. Please call us first.

Buy new furniture or anything on credit

Don’t buy anything where your credit report needs to be pulled, including interest free credit at a furniture store. Hint: If they need your SSN, they’re probably going to check your credit. Please call us first.

Home Improvements

Don’t start significant home improvements

Paying off collections

Don’t payoff collections or charge-offs. From now on, don’t pay off collections unless we specifically ask you to. Generally, paying off old collections causes a drop in the credit score.

Buy a new car

Hold off on large purchases such as cars, boats or real estate until after your loan closes.

Max out credit cards

It’s important not to max out or over charge existing credit cards.

Consolidate debt

Please don’t consolidate debt right before or during the loan process. Wait until after your loan closes.

Close credit accounts

Don’t close credit card accounts. This can temporarily affect your credit score in a negative way.

Change your legal status

Call us before cosigning on a loan, changing your name, or address.

Playing with your money

Don’t move money around, open, or close accounts. Keep funds in one account.

Avoid large cash deposits

It is important to avoid large cash or unexplained deposits. If you’re not sure, call us first!

Of course, CALL US anytime if you are unclear or have a question about your loan. That’s why we’re here!

Find a loan officer to apply

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