Do’s and Don’t’s When Applying for a Mortgage

Applying for a Mortgage?

DO’s

  1. Make sure your government issued ID is valid.
  2. Have the most recent 2 years tax returns, W2’s, 1099’s and K1’s (as applicable) available to your mortgage consultant. If you need to contact your CPA, prior employer, etc. start that process early to get copies of anything you are missing.
  3. Disclose all debts/liabilities to your mortgage consultant (including those that have been opened in the last 60 days prior to your loan application).
  4. Confirm any prior credit disputes you have filed with the credit bureaus are resolved.
  5. Confirm the employment and salary verification procedure at your employer and provide that information to your mortgage consultant.
  6. Continue to make all your payments on time.
  7. Provide any documents requested to your mortgage consultant as soon as possible.
  8. Be prepared to provide additional documentation throughout the process.
  9. Let your mortgage consultant know about any changes in your financial accounts during the process.
  10. Provide complete documents – including all pages of each document that has been requested – even pages that are blank.
  11. Tell your mortgage consultant if you will be out of reach during the mortgage process or require special accommodations for closing.

DON’T’S

  1. Authorize any inquiries into your credit.
  2. Apply for any new financing including credit cards, furniture, appliances, vehicles, boats, cell phones, cable, alarm companies, etc.
  3. Incur any additional debts, including increases in credit card balances and co-signing for others. (There is a credit monitoring service that will alert lenders when any new debts are opened during your loan process!)
  4. Close any open accounts.
  5. Make a job change without discussing first with your lender/mortgage broker. (This isn’t always a deal-breaker, but it can be!  If your plans include a job change, it’s advisable to let your lender know).
  6. Deposit cash (i.e. “mattress money”) into your bank account 60 days prior to the loan application. Cash deposits/undocumented cash is not an allowable source of funds for the down payment on a mortgage application.
  7. Make significant new purchases on your existing credit cards/installment loans during the loan application process.
  8. Sign up with any credit repair or “consolidation” company.
  9. Spend the money you have set aside for closing, or gift monies you have received.

Questions? Contact Tupper’s Team and we will walk you through all of it.