Waiting on pins and needles for your mortgage to go through processing can be pretty stressful. We aim to alleviate that stress so you can have a happy home buying experience from start to finish.
To help you avoid processing hang ups, we’ve put together a list of dos and don’ts you should follow:
Give your loan officer a heads up before opening any new accounts (or even borrowing money from retirement funds). Adjustments to your credit profile can cause delays, change your financing terms, or even prevent closing entirely.
Avoid any career changes because they may have a negative impact. For example, changing from full-time to part-time, salary to commission, or receiving a new bonus structure can put a wrench in mortgage processing.
Try to keep your deposits separate and small. The source of large and even some small deposits will need to be verified. Make copies of each check and deposit slip. Avoid depositing cash.
If you need to sell investments, do so as soon as possible and document the transaction. There’s always a risk that the market will move against you which can leave you short of cash at closing.
Your loan officer will provide answers if you’re not sure what you should or shouldn’t do while your mortgage is being processed.
Underwriters may need to collect various documents and financial records from you. Keep your phone close and check your email often. Even if a request seems intrusive, remember the request wouldn’t be made if it wasn’t necessary to process your mortgage.
Underwriters typically verify your income and tax documents through your employer(s), CPA, and/or IRA tax transcripts. Be ready to share information as needed. Keep all pay stubs and asset account statements in a safe place.
Relatives who are giving you gift funds must sign a gift letter. They will also need to provide account statements that show where the money is coming from. All gift funds must be “seasoned.”
If you’re a renter, continue paying rent on time and keep proof of payments. If you’re selling your current home, be prepared to show your Settlement Statement.
If you will be renting out your current residence, you may have to show sufficient equity, a lease, and receipt of the first month’s rent and security deposit.
A negative change to your credit profile can cause you to lose the prequalification. Although your credit is sometimes not fully in your hands, one important thing you can do is continue making all payments on time to keep your credit as stable as possible.
Always consult with your loan officer before making any financial decisions during loan processing. This approach can save you from headaches that could be avoided.
If you’re ready to prequalify, contact us today!