Things to Do and Not to Do
Once you've applied for a mortgage there are certain things you need to do and certain things you shouldn't do. Some seem obvious but... I've heard of people losing their loan because they quit their job just days before closing or they bought a new car during the process. Below is the list I share with my borrowers to make sure the closing goes as planned with no last minute surprises!
Things to DO
DO respond to my requests in a timely manner to avoid delays in the process.
DO keep all existing credit card accounts open.
DO use your credit as you normally would. You don’t want to appear you are diverting from your normal spending patterns, it could cause your credit score to go down.
DO maintain your employment at your current job.
DO pay off collections, judgments, or tax liens reported within the last year.
DO stay current on your existing accounts.
DO call me! I am here to help you through the loan process!
Things to AVOID
DO NOT leave off any debts or liabilities when filling out your loan application. The underwriter is trained to find such things and it’s important to be honest up front.
DO NOT change jobs. This includes quitting your job, going self-employed, or moving within the company.
DO NOT buy a new vehicle. This will put your loan in jeopardy. It could cause your DTI (debt-to-income ratio) over the limit for the loan you are trying to obtain.
DO NOT spend the money you have saved for closing. Even if you are one of the lucky ones to receive your closing costs paid, you still may have a balance due at closing.
DO NOT buy a new refrigerator or anything else that might be considered a big ticket item. This will undoubtedly affect your DTI (debt-to-income ratio).
DO NOT apply for additional credit. Whether you’re getting a new cell phone, student loan, a new credit card, anything that would warrant a credit check, do not do it.
DO NOT use your charge cards unreasonably or excessively. Also, do not fall behind on payments!
DO NOT make any large deposits without first checking with me. Any large non-payroll deposits will need an explanation.
DO NOT change bank accounts.
DO NOT co-sign on any loan for anyone! This will definitely make you responsible for that loan and could increase your DTI (debt-to-income ratio).