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.
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.
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!