Do’s and Don’ts When Applying for a Home Loan

You have done the hard part in the homebuying 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!!

Let?s start with the ?do?s? ?

  1. Do keep the process moving?by responding?to your loan officers? requests?for documentation as soon as possible.
  2. Do make decisions as?soon as is reasonably?possible.
  3. Do convey questions or concerns you have as they develop.
  4. Do continue to make all of your rent or mortgage payments on time.
  5. Do stay current on all other?existing accounts.
  6. Do continue to work your normal work schedule with no?unplanned?time off.
  7. Do continue to use your credit as normal.
  8. Do be prepared to explain any large deposits in your bank accounts.
  9. Do enjoy purchasing your home but remain objective throughout the process to help make decisions that are best for you.

After you have been preapproved for your mortgage you will want to refrain from the following ?

  1. Do not make any major purchases (car, boat, jewelry, furniture, appliances, etc.).
  2. Do not apply for any new credit (even if it says you are preapproved or ?xxx days same as cash?).
  3. Do not pay off charges or collections (unless directed by your loan officer to do so).
  4. Do not?make any changes to your credit profile.
  5. Do not change bank accounts.
  6. Do not make unusual deposits into your bank accounts or move money around from one account to another.

Follow these simple rules and you will help to make your loan closing as smooth and hassle-free as possible! Good luck!