The DOs and DON'Ts of a New Mortgage

The VERY, VERY important things you should and should not do when obtaining a new mortgage.

DO:

• DO continue paying off debt - help keep your debt ratio low!
• DO explain any credit blemishes and credit inquiries - help get your mortgage approved!
• DO submit all items requested by your loan officer within 5 days - get your mortgage closed on time!
• DO keep originals of all pay-stubs, bank statements and other financial documentation.
• DO provide documentation for the sale of your current home - sale contract, closing statement, etc.
• DO notify your loan officer if you are receiving gift funds for closing costs - FHA requires proof of a long-standing relationship.
• DO notify your loan officer of any changes in employment or marital status - change of employer, raise, transfer, change of pay status, divorce, marriage, etc.
• DO contact your loan officer to lock in your mortgage rate.
• DO research and choose a homeowner's insurance company and program as soon as possible.
• DO notify your loan officer of any special circumstances with your closing - utilizing Power of Attorney, sending closing documents to you at location other than the title company.

DON'T

• DO NOT make major purchases prior to closing - new car, furniture, appliances, electronics, etc. - This may impact your ability to qualify!
• DO NOT attempt to open or increase any liabilities including credit cards, signature loans, etc. during the loan process. - This may impact your ability to qualify!
• DO NOT change jobs/employer without inquiring about the impact this change would have on the approval of your mortgage.
• DO NOT obtain and/or deposit unusually large sums of money without proper documentation within 60 days of closing - FNMA/HUD guidelines require documentation as to the source of these funds - copy of bonus check, copy of insurance settlement, gift letter, etc.
• DO NOT close, open or transfer any asset accounts without acquiring the proper documentation required for your loan file.