Getting a Home Loan - Do's and Don'ts

You have done the hard part in the home buying process and chosen a Lender, gotten prequalified, and have a real estate agent to work with. You have also gone out and found the home of your dreams! Best of all, your team has done a good job of negotiating the best deal for you.

Getting a home loan is a very interactive process. Some clients are totally unaware of the pitfalls they may face during the loan process. To help avoid any surprises while waiting for final approval, here is a short list of “do’s and don’ts” to follow.

Let’s start with the “do’s”…

1. DO keep the process moving by responding to your Lender's requests for documentation as soon as possible.
2. DO make decisions as soon as is reasonably possible.
3. DO convey questions or concerns you have to your Lender or Agent as they develop.
4. DO continue to make all of your rent or mortgage payments on time.
5. DO stay current on all other existing accounts.
6. DO continue to work your normal work schedule with no unplanned time off.
7. DO continue to use your credit as normal.
8. DO be prepared to explain any large deposits to your bank accounts.
9. DO enjoy purchasing your home but remain objective throughout the process to help make decisions that are best for you.

After you have been preapproved for your mortgage you will want to refrain from the following…

1. DO NOT change jobs, quit your job, or become self-employed.
2. DO NOT make ANY major purchases (car, boat, jewelry, furniture, appliances, etc.).
3. DO NOT use credit cards excessively or let account payments fall behind.
4. DO NOT apply for any new credit (even if it says you are preapproved or “XXX days same as cash”).
5. DO NOT pay off charges or collections (unless directed by your Lender to do so).
6. DO NOT make any changes to your credit profile.
7. DO NOT change bank accounts or bank institutions.
8. DO NOT make unusual deposits into your bank accounts or move money around from one account to another (unless you check with your Lender first).

Follow these simple rules and you will help to make your loan closing as smooth and hassle free as possible! Always keep your Lender in the loop.