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 negatively impact your loan. At Draper and Kramer Mortgage Corp., we educate our borrowers on how to smoothly navigate the mortgage process, and that includes providing them with this 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
- Do make timely payments on all current debt obligations (current mortgage, student loans, credit cards, etc.)
- Do notify your loan officer immediately regarding any changes to your employment status
- Do notify your loan officer if you plan to receive gift funds for closing
- Do provide your earnest money deposit from your own personal bank account
- Don’t omit debts or liabilities from your loan application
- Don’t change jobs, become self-employed or quit your job
- Don’t buy a new vehicle or any other big-ticket item
- Don’t use credit cards excessively or fall behind in payments
- Don’t spend money that has been set aside for your closing
- Don’t originate any new inquiries into your credit
- Don’t make large deposits without first checking with your loan officer
- Don’t change bank accounts or move money between accounts
- Don’t co-sign on a loan for anyone
If many of these points don’t seem obvious, it’s because they aren’t. Even minor changes to your assets, income, debt and credit profile before your mortgage closes can affect your loan. Getting tripped up on even one of these points could potentially delay your mortgage, increase its cost, require less favorable terms or disqualify you completely. If you’re considering getting a new mortgage in the future, speak with your loan officer early for complete advice on how best to prepare.