The Top 12 Do’s and Don’ts for Borrowers

HOME LOANIt’s a huge relief once a home loan has been approved. It feels like seeing the light at the end of the tunnel, but the process isn’t over until the loan has closed and the keys to your new home are in-hand. In fact, your loan can be denied after your approval, because underwriters may periodically check your credit report, to ensure no new activity has taken place.

Stay On Track

To avoid the heartbreak of losing that loan – and losing the perfect house – keep these Do’s and Don’ts in mind:

DON’T quit your job or change jobs. If this is likely to happen, speak with your loan officer and let your agent know.

DON’T apply for credit anywhere else except with your lender. More credit checks can negatively affect your credit score.

DON’T change bank accounts or transfer money within your existing accounts. These changes will require extensive documentation and are subject to a verification process, which can be damaging to your loan.

DON’T co-sign for anyone, for any reason, for anything.

DON’T purchase or attempt to purchase anything else on credit such as a car, boat, or furniture. It may be tempting to start purchasing things to outfit your new home, but those new appliances may put your loan in jeopardy.

DON’T charge any abnormal amounts to your current credit cards or credit lines.

DON’T send in late payments, or incur late fees for anything.

DON’T wait longer than the time frame given per your contract to provide all necessary paperwork and information to your lender when requested. Plan ahead and organize these items early, and turn them in as soon as possible, to allow for any issues.

DO keep all accounts current, including mortgages, car loans, credit cards, etc. Continue making regular payments, and make them on or before their due dates.

DO contact both your lender and your agents any time a question may arise.

DO have any lender-required money/funds to your loan officer within 72 hours after home inspection is complete.

DO return phone calls from your agent, loan officer, Settlement Company, or anyone else involved in your transaction within 2 hours of a message.

When In Doubt, ASK!

Your loan officers, agents, and other representatives are here to help you. Their job is to facilitate your home purchase, including the loan process. It’s expected that this will be a confusing time, especially for first-time home buyers. Keep in contact, and whenever a question comes up – whether it’s about your new loan or about existing debt – be sure to ask. If it has to do with your money or credit, it’s better to be safe.

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