Mortgage Do’s and Don'ts -

Mortgage Do’s and Don'ts

Important reminders for mortgage success:

Mortgage Do's:

  • Bring a cashier’s check made out to the title company for your closing costs. You can bring a personal check to closing for $500 or less.
  • Notify your loan officer if your salary or other compensation has changed from what has been noted on your loan application.
  • Inform your loan officer if your address changes from what appears on your original loan application. We will complete rental and mortgage verification for all of your residences within the last two years.
  • Obtain homeowner’s insurance with minimum coverage equal to the replacement value of the house. Call our office with your agent’s name and phone number at least 10 days before closing.
  • Keep documentation (or a “paper trail”) on any large deposits into your account. A “paper trail” is a copy of all paperwork necessary to prove financial transaction: copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.
  • Notify your loan officer if you move funds from one account to another and provide a “paper trail” on any transactions.
  • Make sure you have a clear termite report on the property. If the termite report is not clear, provide a receipt for treatment that shows the chemicals and the amount used for treatment (upon request).
  • Continue to send pay stubs each pay period and updated bank statements through the loan process. Your loan officer will need to verify continued employment and level of income.

Mortgage Don'ts:

  • Don't acquire any additional credit lines or make any large purchases on existing credit without first consulting your loan officer. For example: purchasing a car, any furniture, or buying appliances for your new home will change your debt to income ratios. The slightest change could invalidate your approval.
  • Don't change jobs without consulting your loan officer. Even a slight change in compensation may affect your ability to qualify. Borrowers must have a two year history of bonus and/or commissions to be counted as income. The underwriter will verify employment on the day of closing as a quality control check.
  • Don't co-sign with anyone to obtain a line of credit or make a purchase. The payment will show up on your credit report as an additional debt. The underwriter will pull your credit the day before closing to verify that no new debts and / or missed payments appear on your credit report.
  • Don't negotiate your contract with an allowance and expect to get money back at closing. An allowance can't be used to pay closing costs and/or pre-paids.
  • Don't stop making payments on your current mortgage or rent obligation. If you go more than 30 days late on these obligations you will not qualify for the new mortgage for up to 1 year.

Are you ready to move forward with a purchase or refinance? Please give us a call at 888-810-1459 and let us help you secure financing for the purchase of a new home or save you money on the refinance of your existing home. Be sure to ask your loan officer about our closing costs incentives and our low rate guarantee!

Disclaimer: The information contained in this article has been prepared by an independent third party and is distributed to consumers for educational purposes only. The information is considered reliable but not guaranteed to be accurate. The opinions expressed in this article do not represent the opinions of Skyline Home Loans. Please consult with a licensed loan officer for expert advice regarding financing or refinancing a home.