Starting a new job. Receiving a large cash gift. Buying a new car. These are all typically happy and exciting events. However, if you’re considering applying for a mortgage – or are already in the process of obtaining one – these developments could spell trouble for your home financing. At Draper and Kramer Mortgage, we educate our clients on how to smoothly navigate the mortgage process, and that includes providing them with this important list of dos and don’ts when getting a home loan.
Do:
- Have easy access to all your pay stubs, bank statements and other financial documents
- Make timely payments on all current debt obligations (current mortgage, student loans, credit cards, etc.)
- Notify your loan officer immediately regarding any changes to your employment status
- Notify your loan officer if you plan to receive gift funds for closing
- Provide your earnest money deposit from your own personal bank account
- Ask any and all questions you have throughout the process
Don’t:
- Omit debts or liabilities from your loan application
- Change jobs, become self-employed or quit your job*
- Buy a new vehicle or other big-ticket item*
- Use credit cards excessively or fall behind on payments
- Spend money that has been set aside for your closing
- Initiate any new inquiries into your credit
- Make large bank deposits*
- Change bank accounts or move money between accounts*
- Cosign on a loan
* Consult with your loan officer for guidance if considering these actions.
Conclusion
If any of this advice is surprising to you, you’re not alone. Many people are unaware of how minor changes to their assets, income, debt and credit can affect their mortgage before it closes. When you’re financing a home, getting tripped up on even one of these points could potentially delay your mortgage, increase its cost, subject you to less favorable terms or disqualify you completely.
If you’re considering getting a new mortgage in the future, speak with us early for complete advice on how best to prepare.
