The Do's and Dont's | Shawn Cohen
Once you are ready to begin the mortgage application process, please keep in mind several important things.
DON’T move cash around
During the loan application process, we will verify all the income and assets listed as part of your application. Moving these assets can delay the processing of your loan. The best advice is to leave everything where it is and discuss any changes you wish to make with Loan Officer.
Document large deposits
We will verify all sources of funds for your transaction. We’ll be looking at any large deposits into your asset accounts (checking, savings, money market, etc.). You should be prepared to document all sources -- perhaps a copy of a paycheck, bonus check, money from the sale of an asset, etc.
If you’re selling a large asset, such as a car, to come up with the cash for closing, please document the sale. Keep everything, including the check the buyer gives you, car title or a bill of sale. Sometimes you’ll even need to get a certified appraisal of the item. Talk to your Loan Officer if you have questions.
Document all cash gifts
Large cash gifts from relatives are very common when purchasing a home. If you are anticipating receiving a cash gift from a relative toward the purchase of your home, please notify your Loan Officer.
Keep all of your bank statements, pay stubs, tax returns, along with any W-2s, 1099s or K-1s and any other financial papers from the past two years in a handy place. If you sold a home in the past two years, have your Settlement Sheet (called a HUD-1) handy. Try to create a file where you can consolidate all of your financial paperwork for easy access.
Avoid any new loans, credit cards or other changes to your credit
It is a good idea to avoid any new sources of credit as it will materially change your credit report. Additionally, if you’re planning to pay off major credit debt before closing, hold off until you’ve spoken to your Loan Officer. Believe it or not, sometimes paying off debt can hurt your credit score!
Review your credit report
The best way to get a jump start on your mortgage application process is to know what your creditors are saying about you. Request a free credit review with your Loan Officer.
Tell us about a new job
Making a career move? Make sure your Loan Officer knows about it as soon as possible so that we can ensure all appropriate changes are made to the loan application.