You have done the hard part in the home buying process and chosen a lender and 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 great job of negotiating the best deal for you.
Now, as a buyer, all you have to do is sit back and wait for your loan to close … right? Wrong!!
Getting a home loan these days is a very interactive process. I am always amazed by how many clients I work with who come to me unaware of all the pitfalls they face during the loan process. To help avoid any surprises while waiting for final approval,
I provide my clients with a short list of “do’s and don’ts” to follow.
Let’s start with the “Do’s” …
- Do keep the process moving by responding to your loan officers’ requests for documentation as soon as possible.
- Do make decisions as soon as reasonably possible.
- Do convey questions or concerns you have as they develop.
- Do continue to make all of your bill payments on time.
- Do continue to work your normal work schedule with no unplanned time off.
- Do continue to use your credit as normal.
- Do be prepared to explain any large deposits in your bank accounts.
- Do enjoy purchasing your home but remain objective throughout the process to help make decisions that are best for you.
- Do submit your paystubs as you receive them throughout the process until the close of escrow.
- Do submit your bank statements as receive them throughout the process until the close of escrow.
- Do provide a copy of your bank transaction showing the clearing of your earnest money deposit.
After you have been preapproved for your mortgage you will want to refrain from the following …
- Do not make any major purchases (car, boat, jewelry, furniture, appliances, etc.).
- Do not apply for any new credit (even if it says you are preapproved or “xxx days same as cash”).
- Do not pay off charges or collections (unless directed by your loan officer to do so).
- Do not make any changes to your credit profile.
- Do not change bank accounts.
- Do not make unusual deposits into your bank accounts or move money around from one account to another.
- Do not deposit undocumented Cash into your bank account.
Follow these simple rules and you will help to make your loan closing as smooth and hassle-free as possible! Good luck!