Do's and Don'ts During the Loan Process

Congratulations on entering into the exciting process of purchasing your new home!  There are certain “Do’s and Don’ts” which may affect the outcome of your loan request.  These remain in effect before, during and after loan approval up until the time of settlement when your loan is funded and recorded.  Many times, credit, income, and assets are verified the hour before you have signed your final loan documents.  Here is a list to keep in mind.

MAKE SURE THAT YOU DO NOT:

  1. DO NOT quit your job or change jobs.  If this is likely, consult with your loan officer for best course of action.
  2. DO NOT apply for credit anywhere else except with your lender.  This causes more “hits” on your credit rating which can reduce your credit score.
  3. DO NOT change bank accounts or transfer money within your existing accounts.
  4. DO NOT co-sign for anyone, for any reason, for anything.
  5. DO NOT purchase or attempt to purchase anything else on credit such as a car, truck, boat, furniture or other real estate.
  6. DO NOT charge any abnormal amounts to your current credit cards or credit lines.
  7. DO NOT send in late payments or incur late fees for anything.
  8. DO NOT wait longer than the time frame given per your contract to provide all necessary paperwork and information to your lender when requested.
  9. DO NOT deposit cash into your account throughout the loan process.
  10. DO NOT wire funds for closing based on emailed instructions.

MAKE SURE THAT YOU DO:

  1. DO keep all accounts current, including mortgages, car loans, credit cards, student loans, etc.
  2. DO contact both your lender and your agent anytime a question may arise.
  3. DO make all payments on or before due dates on all accounts, even if the account is being paid off with your new loan.
  4. DO have your down payment/cash to close funds in your bank accounts and statements sent to your lender to verify as soon as you get an offer accepted on your new home.  
  5. DO return phone calls from your agent, loan officer, closer, or anyone else involved in your transaction in a timely manner.
  6. DO be aware of wire fraud and only wire funds to the closing company when you have received their wiring instructions over the phone.

Following this short list of “Do’s and Don’ts” will help eliminate any potential issues that may arise during the loan process and ensure that you move into your new home on time.

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