DURING YOUR MORTGAGE PROCESS
Do’s and Don’ts Before You Close Your Loan
DO notify us if your salary or other compensation changes from what was noted on your loan application.
DO inform us if your address changes from what appears on your original loan application. We will complete rental and mortgage verification for all your residences within the last two years.
DO obtain homeowners insurance with minimum coverage equal to the amount of your total loan or the replacement value of the home. Contact us with your insurance agent’s name and phone number at least 10 days before closing.
DO keep documentation (or a “paper trail”) on any large deposits into your account. A “paper trail” is copies of paperwork necessary to prove financial transactions (i.e., copies of checks, deposit slips, loan paperwork, forms to liquidate assets, etc.).
DO make sure you have a clear termite report on the property. If the termite report is not clear, provide a receipt for treatment that shows the chemicals and the amount used for treatment (upon request).
DON’T acquire any additional credit lines or make large purchases using existing credit without consulting us first. For example, purchasing a car or buying appliances for your new home will change your Debt-to-Income (DTI) ratios.
DON’T change jobs without consulting us. A change in compensation may affect your ability to qualify. Borrowers must have a two-year history of bonus and/or commissions to be counted as income. Lenders may verify employment on the day of closing as a quality control check.
DON’T co-sign with anyone to obtain a line of credit or make a purchase. The payment will show up on your credit report as an additional debt.
DON’T negotiate your contract with an allowance and expect to get money back at closing. An allowance can be used to pay closing costs and/or prepaids.