Your credit, income and asset situation is critical to maintain during the mortgage process. Here are some do’s and don’ts to follow once you have decided to buy a home:
DO'S | DON'TS |
---|---|
DO…stay current on existing credit accounts – make those payments ON TIME | DONT…apply for new credit or open any new credit accounts or close any currently open credit accounts |
DO…continue using your existing credit as normal – but no large purchases | DONT…make any large purchases on your current credit account or increase your spending on current credit accounts – business as usual when it comes to credit |
DO…provide all documents requested upfront and keep all original paystubs; bank statements; tax returns and other financial documents handy as you receive them. You may be required to update your loan file during the process. | DONT…co-sign for anyone else for a home or car loan or any other type of debt |
DO…notify your mortgage lender if you are planning on receiving any gift funds for the down payment or closing costs | DONT…dispute any credit accounts on your credit report before or during the loan process – disputed accounts can alter your credit score |
DO…notify your lender if you have any financial expenditures coming up during the loan process that will lower your assets | DONT…pay off any collections or charge-offs on your credit report unless advised by a credit professional or your mortgage lender – activating these accounts by taking action may alter your credit score |
DO…notify your lender if you have any employment changes; raises or promotions or change in pay structure | DONT…make any type of employment or compensation changes without notifying your mortgage lender |
DO…respond promptly to all request to provide documentation; sign documents or answer any questions your lender may have | DONT…close any current bank accounts; open any new bank accounts or move money around between accounts |
DO…notify your lender if you are going on vacation or will not be available during the loan process | DONT…deposit any cash into your bank account without contacting your lender to discuss the requirements of documentation |
If you have questions regarding mortgages please contact us and we will refer you to one of our trusted lenders.