Do’s and Dont’s

Do's and Don'ts of Mortgage Process

Ensure a Smooth Mortgage Process

Have you applied for a mortgage loan? What do you need to know to ensure a smooth mortgage process? Here are some important DO’s and DON’Ts you should be aware of if you have applied or if you are considering applying for a mortgage loan.

Don’t Apply for New Credit

If you have applied for a mortgage loan or intend to apply for a mortgage, do not under any circumstances apply for new credit. This means no new credit cards, credit card consolidations or auto financing. If you open a new account during the mortgage process, it will need to be verified by your lender. While you may think that your lender won’t know, lenders do a credit check prior to closing to ensure your account status hasn’t changed. Anything that changes will require additional verification. Your credit score could change because of your new financial situation, which could cause delays in your settlement or changes to your interest rate.

Do Inform Your Lender if Anything Changes

Inform your lender if anything changes in terms of income, address, assets, etc. If you can avoid it, try not to change jobs after a pre-approval. If you change jobs, your lender will need to verify your new employment. In most cases, you will need two paystubs to prove your new employment which could delay your closing date. In addition, a lender prefers to see a two-year work history.

Don’t Co-Sign for Another Borrower

This is the same as applying for new credit. IF you co-sign for another borrower, this will show up on your credit report and could affect your credit.

Do Pay Your Bills on Time

Pay all your bills on time and keep all your receipts. Do not allow any account to be overdrafted. Late payments or overdrafts may impact your mortgage loan approval.

Don’t Pay Off All Your Debt

Paying off debt is a great thing – just wait until your loan closes. Your loan approval is based upon a financial snapshot at one point in time. If you pay off your debt during the mortgage loan process, your financial snapshot changes requiring additional verification. In addition, paying down debt can reduce your assets available for a down payment or cash reserves – which could impact the debt-to-income ratio calculated during your intitial approval.

Do Ask Questions

Stay in constant contact with you lender and make sure you understand everything that is happening. Don’t be afraid to ask any questions.

Apply for a Mortgage Loan

Are you ready to apply for a mortgage loan? To submit an application online, simply go to http://www.teaminlanta.com and complete the Full Application.

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About Best Florida Mortgage Company! Jim Marcinkowski

Mission Statement Our mission is to be the home financing partner that you trust to serve your family, friends and community. Through our family of dedicated mortgage professionals, our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty and ethics is the foundation of all of our relationships. NMLS 182565, NMLS 1016
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