Dos and Don’ts

Do’s and Don’ts to follow throughout the mortgage process.

Please review this form over and over again throughout the loan process…particularly when making any decision that may affect you financially. This list of Do’s and Don’ts will remain in effect until after the funding of your loan. Some of the items may seem a bit humorous, but disregarding even one item on this list could have devastating impacts on your loan process. Your ability to obtain financing at this time could be severely jeopardized or even thwarted all together. At the very least, ignoring one of these guidelines could drastically slow down your loan process. I am giving you this information to increase your awareness and understanding of the loan process and the many details involved.

And finally…
DO continue making your monthly mortgage or rent payment!
If you stop making your monthly payments, it will severely jeopardize your ability to get a good loan, and will most likely void our efforts in helping you better your current financial position.

Don’t

• Don’t open any new credit accounts!
This means do not apply for any new lines of credit or allow anyone to check your credit for any reason.  Either one of these will lower your FICO score, and could force you into a different loan program with a higher interest rate.
• Don’t make any purchases using credit!
This includes using lines of credit that are already opened. This also means no new furniture for your house and no new cars (or any other large purchases!) Doing so could increase your debt-to income ratio (D/I) beyond the parameters for your loan program and could either bump you to a higher interest rate or make it impossible for you to obtain financing at this time – depending on your volume of debt.
• Don’t quit your job or change employers!
This will almost positively make it impossible for you to obtain financing. If you hate your job, suffer through until AFTER your loan funds! Your funding date is different than your closing date. Depending on whether you are purchasing or refinancing, funding will occur 1-3 business days after your loan closing. (Underwriters require a certain amount of job history to show stability. They will be calling your employer to verify that you are still working at the same job before they will wire funds to the title company.)

Do

• Do call me first!
If you are not sure if something will hurt your FICO score, please call me before making a decision. Sometimes retail establishments will not even tell you they are going to check your credit. If someone in a store asks you for your name, address, and
social security number, chances are they are about to check your credit. Do not give them your social security number!!

• Do call me first!
If you are not sure if you will be using your credit for a certain purchase, please call me first. New lines of credit also include “90-days same as cash,” 12-month 0% finance options, delayed payment programs, or any other similar finance options available. The use of your credit is OFF LIMITS until after the funding of your loan!

• Do call me first!
If you are not sure if your loan has funded, please call me first! I will be sending you a letter to confirm your funding, but if you are in a huge hurry to change jobs, please call me to verify that your loan has funded BEFORE you make any moves!


Article By: Admin


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