Don’t max out or overcharge existing credit cards.
Do keep your employment within the same company or field of work
Don’t consolidate debt to one or two credit cards.
Do pay off your collections, judgments or tax liens reported within the past year.
Do be prepared to pay off collections if required by underwriting or the loan program guidelines.
Do provide any documentation for satisfied judgments or paid tax liens.
Do stay current on payments for all existing monthly obligations
Do call before making any financial decisions or changes to your normal financial routine. We’re here to help you through the process
8 Tips to a Smoother & Faster Closing
Ensure that your application is filled out in its entirety. Make sure all information is legible and correct. Even a small error in dollar amount for income or assets could take valuable time to correct and hold up the funding of your loan.
During the loan process, the lender will need to verify your employment. If you are aware of any reasons that your employer may take an excessive amount of time for this process, please let your loan officer know at the time of application. If there are any changes in your employment status during the loan process, let your loan officer know immediately.
Your tax returns will be validated with the IRS by the lender. This is a standard procedure for all lenders. If you have filed an extension or filed any type of amendment, please advise your loan officer of this information at the time of application.
Make all mortgage payments on time. Mortgages are paid in arrears, therefore, when you make your payment, it is for the previous month. Do not let the closing of your new loan dictate if and when you pay your current mortgage. Your credit is important and should not be jeopardized in any way.
Do not make any large deposits to your accounts that you cannot paper trail, especially large cash deposits. Lenders do not want to see deposits that could be misconstrued as a loan or funds coming from unacceptable account or source. Transferring funds between accounts will also require a paper trail, so you may want to refrain from moving money around during the loan process if possible.
Do not apply for or open any new credit cards or make any large purchases on cards you currently have. Lenders will pull a pre-closing credit report before funding your loan to ensure that no new debt has been incurred. If there is new debt or higher balances, your loan will have to be re-approved with these new payments which could negatively impact your ratio’s, causing a decline of your loan. Do not co-sign for any liabilities during the loan process.
Continue to pay all liabilities on time, especially any liabilities that are reflected on your credit report. Your credit is an integral part of the loan approval process and could have a negative impact if not kept current and in good standing.
If you are a wage earner (not self-employed) , you must let your loan officer know if you file any schedules on your tax returns such as schedule ‘a’ which is unreimbursed expenses. Your w-2 and paystub will not reflect any types of deductions like this and if your loan officer is unware of these deductions, it could negatively impact you loan before funding.
