What You Can and Can Not Do During the Home Loan Process
As the mortgage industry adjusts to new financial regulations, it is more important than ever to ensure that the financing of your new home goes smoothly. Approval of your loan is contingent upon your financial profile on or shortly before closing, not at the time of your application.
Changes in your financial profile during the time period between the application and closing dates could adversely affect your ability to obtain financing!
Please note the following prohibited and permitted pre-closing actions to ensure a smooth and stress-free experience:
Prohibited Pre-Closing Actions
Consult with your mortgage banker before doing any of the following before closing:
X DO NOT apply for new credit or authorize the pulling of your credit.
X DO NOT make any deposits over $500 (except for customary payroll deposits) into your bank accounts.
X DO NOT bounce any checks or permit any account to realize a negative balance.
X DO NOT make any large purchases, cash advances OR incur significant charges on your credit cards.
X DO NOT quit or change jobs.
X DO NOT take it personally if you’re requested to provide additional information about your income or deposits. All information will remain completely confidential.
Permitted Pre-Closing Actions
√ Promptly provide legible copies of all pages of each document requested by your mortgage banker throughout the mortgage process.
√ Continue to pay all financial obligations on time (credit cards, car loans, existing mortgage, etc.).
√ Provide your mortgage banker with the contact information of the agent through which you are obtaining homeowner’s insurance.
√ Communicate openly and honestly and do not hesitate to contact your mortgage banker with any questions throughout the process. We are here to help!
√ (if a purchase): Provide a copy (both sides) of your earnest money check after it has cleared your bank along with accompanying bank statement reflecting the withdrawal.
√ (if a purchase): Notify your mortgage banker of any changes to the sales contract (i.e. closing date, sales price, etc.).
√ (if a purchase): Ask your agent or seller if the property is in a flood zone as you may be required to obtain flood insurance.