As you go through the mortgage loan process, there are certain things that you should do and not do in order to help your loan progress and close as smoothly as possible. Read on for some key “do’s” and “don’ts” in the typical loan process.
DO keep your job.
A change in employment status can change your loan status, so it is best to wait until after your loan closes to make any changes, such as switching careers, starting your own business, taking a leave of absence, or moving to a commission-based position.
DON’T switch phone, internet, or cable providers.
Many companies require a credit check prior to completing a contract, which can cause a hit on your credit score. While in the loan process, avoid any unnecessary credit checks to prevent unforeseen changes or hurdles.
DO continue paying your bills and credit cards on time.
Late payments are recorded on your credit report, which can impact your eligibility for a loan. If you have trouble paying your bills, or paying them on time, consider reaching out to a Certified Financial Planner™ or other trusted financial professional for support.
DON’T make large purchases.
It’s very easy to want to start decorating once you find your dream home, but hold off on furniture and appliance shopping until your loan closes. Large purchases can offset your debt-to-income ratio, reducing your cash flow and potentially impacting your credit score.
DO provide all requested by your Loan Officer and Loan Team.
Members from your Loan Team will often reach out requesting additional documentation for processing your loan. Be sure to provide any requested paperwork in a timely manner to help ensure your loan progresses smoothly and closes on time.
DON’T open or close any accounts, or co-sign on other loans.
Whether for a credit card, car, work, or something else, opening and closing accounts, as well as co-signing on loans, will impact your credit score. Avoid taking any action until your loan has closed.
DO keep a well-documented paper trail of your finances.
Documentation of money transfers, deposits, and withdrawals may be needed for processing your loan. Be sure to keep receipts and copies of your bank statements to avoid any unnecessary hiccups or stalling in your loan process.
DON’T have large cash deposits into your bank account.
Large cash deposits can be difficult to source and create unnecessary challenges in closing your loan.
DO contact us with any questions you may have.
Whatever questions you may have, our licensed Loan Officers are available to answer your questions and assist you throughout every step of the loan process. If you need more information or would like to talk to a Loan Officer, please don’t hesitate to contact us!
This is for informational purposes only and is not an offer to extend consumer credit, nor is it a commitment to lend. Terms and conditions of programs, products, and services are subject to change without notice. All loans are subject to credit and property approval. Certain restrictions may apply on all programs. This may not include a complete list of factors. Any opinions expressed in this post are those of the author(s) and do not necessarily reflect the official policy or position of Mortgage Trust.
Mortgage Trust, Inc. is an Equal Housing Lender. NMLS 3250