Saturday, September 20, 2014

Guidelines for a smooth loan process

Loan Do’s and Don’ts

DO... Start the process early.  Get Pre-Qualified prior to making any offers.
DO… Disclose everything about your financial situation up front. Tell your lender about the source of your down payment, gift funds, money transfers, credit challenges, etc.
DO... Respond to all documentation requests from your loan officer ASAP.  Keep all original copies of paystubs, w-2’s, bank statements, tax returns, etc. 
DO... Keep your real estate agent and loan officer informed of any changes to your credit, income and debts.
DO... Ask questions 

DON’T… Make a job change without inquiring about the impact it will have on your loan qualification.
DON’T… Make any major purchases prior to closing on your loan.  Taking on new debts or even increasing current balances on revolving credit accounts can have a negative impact on your credit score and qualifying ratios.
DON’T… Move the source of your down payment without proper documentation or make any unexplained deposits in any of your accounts for 60 days prior to closing.
DON’T... Forget there is a difference between what you can qualify for and what you may be comfortable paying. Qualifying for a higher payment does not mean you should overspend.