Avoid "Mortgage Approval-Ivy". Don't Make These Mortgage Mistakes

Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI



Avoid "Mortgage Approval-Ivy".

Don't Make These Mortgage Mistakes


When our boys were little, we decided to construct a home in the Lincoln-Way Area of the Chicago Southland.  When choosing a lot to build on, we visited subdivision after subdivision in the area.  


After deciding on the subdivision we wanted, we began a search for our building site.  We walked property after property trying to find the "perfect" lot.  

The lot we ended up choosing was located at the highest point of the street ... great for drainage.  And the lot was filled with trees that, although small at the time, would mature into nice shade for our home once the land was cleared and sunshine could reach them.

After the construction of the home was behind us, there was still a lot to do outside in the yard.  We dug, planted, added landscaping, mowed and pruned.  After a few years passed, the flowers bloomed, the plants and shrubs matured, and the trees filled out providing the shade we had hoped for.  Everything flourished.

Even the poison ivy ...  

Poison ivy was the one negative I found living on that wooded lot.  I ended up itching ... a lot.

Now anyone that has suffered through poison ivy will tell you plain and simple ... it's awful.  The itching and irritation drive you crazy and it's hard to get rid of.  

I quickly came to the conclusion that the best solution for treating poison ivy was to NOT catch the dang stuff in the first place.  I think that's the best solution for "Mortgage Approval-Ivy" too.  

What's Mortgage Approval-Ivy?  

It's the irritation, angst, and suffering felt by mortgage applicants if they commit one of the following mistakes after receiving mortgage approval: 

     Mistake #1:  Accepting a gift or check from someone NOT named on the Contract or Loan Application and then using it for Earnest Money.

     Recommendation:  If you are the Buyer and Loan Applicant, the check for Earnest Money should be written from your funds.

     Think of this money as an advance on your down payment ... or the funds needed to Close - and therefore, that money has to be identified as being yours (or at minimum, communicate to your Loan Officer that the EM will be a gift from a Family Member.  Act proactively in this regard.  Processing will move more quickly and smoothly).     

     Alert:  Checks from Non-Borrowing, Non-Buying Parties cause problems ... and "Mortgage Approval-Ivy"!


     Mistake #2:  Needlessly transferring money from one bank to another ... or from one account to another within the same bank - can cause issues.      


     Big Misconception:  All funds needed to cover down payment and closing costs (commonly known as "Cash to Close") must be accumulated or deposited to one account.  NOT TRUE!   

     Separate bank accounts (or Investment accounts) can all be verified and documented ... and their collective balances can be totaled to demonstrate enough "Cash to Close" (funds needed by Borrower(s) for Approval/Closing).   

     Alert:  Needlessly moving funds back and forth between accounts creates a longer paper trail for documentation.  This slows the mortgage process down and causes "Mortgage Approval-Ivy". 


     Mistake #3:  Working fewer hours during the time leading up to your Application for Mortgage.       

      Tip:  This is especially important for hourly-paid employees.     

     Alert:  Mortgage Underwriters look unfavorably when comparing low/lower, Year-to-Date gross incomes reported on submitted pay stubs to earlier incomes/pay stubs. (The most recent pay stubs are required from Applicants at the time of Mortgage Application).  Avoid "Mortgage Approval-Ivy" by continuing to work your normal amount of hours at your job, when possible.     


     Mistake #4:  Accepting cash or "Gifts of Cash", then depositing them into the bank account for which the funds for Closing are then verified.     

     Tip:  There are NO acceptable means by which Cash can be verified (and found acceptable) by a Mortgage Underwriter.

     Alert:  Stay safe from "Mortgage Approval-Ivy".  STOP depositing cash into accounts provided for Mortgage Application.      


     Mistake #5:  Changing jobs prior to ... or after ... applying for a Mortgage without consulting with your Loan Officer (me).   

     Alert:  Even if it's a better or higher-paying job, avoid "Mortgage Approval-Ivy" by talking to your Loan Officer prior to making any change in employment.  That way your LO can advise you as to how to best proceed.


     The bottom line is this:  Don't subject yourself to any of these predicaments during your mortgage process.  Follow the advice of your Loan Officer from beginning to end.


     And should you have questions?  Contact your LO and ask them BEFORE you take any action. 


     It will keep "Mortgage Approval-Ivy" at bay ... and keep irritations from arising ...


* Hoping to Buy or Refinance a Home in New Lenox or elsewhere in the Chicagoland area? Contact me! I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt
Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed
American Portfolio Mortgage Corp.
nmls #175656
Direct: 815.524.2280
Cell or Text: 708.921.6331
eFax: 815.524.2281




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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656


Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 


Your Referrals & Testimonials are Always Greatly Appreciated! 


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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 03/11/2018 11:00 PM
  2. Roy Kelley 05/15/2018 01:00 AM
Lending / Financial
Illinois Will County Joliet
First Time Homebuyer
Advice for Buyers
poison ivy
mortgage documentation
mortgage processing
bank accounts
financing tips
common mortgage mistakes
mortgage process advice
lo advice
underwriting rules and regulations
talk to your lender

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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

You should never make decisions out of your fear. There should always be some logic to what you’re you doing

Feb 27, 2018 10:40 PM #15
Jane Peters
Home Jane Realty - Los Angeles, CA
Connecting you to the L.A. real estate market

Thank you for another great educational post, Gene. You know where this one is going  

Feb 27, 2018 11:48 PM #16
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

Lots of creepy crawly stuff in mortgage approval biz....numbered in this list..inspect the lot carefully you may not have chosen the right lender who hands them out like....well.....and spreads them around ,,,,

Feb 28, 2018 02:19 AM #17
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I hope home buyers will read this post and learn from it. Thank you for sharing 

Feb 28, 2018 02:35 AM #18
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

Gene, this post is a Must Read by all buyers.

Following your tips can prevent a "rash" of problems.


Feb 28, 2018 04:11 AM #19
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, thinking about all the scenarios you've outlined made me itch. Great post for all buyers to read. Sometimes, no matter how many times they hear all the No's, they do it and do it days before closing. 

Feb 28, 2018 05:30 AM #20
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for the great info, Gene.  I will keep this for future reference.

Feb 28, 2018 06:40 AM #21
Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Rockledge, FL
... a small office, delivering big service!

Good info here. I was aware of the job change problem as well as the gifts but never thought much about the consolidation of funds as an issue.  It does make sense!

Feb 28, 2018 07:12 AM #22
Sharon Miller
RE/MAX Platinum - Crane Hill, AL


The most convincing people, are those who can share a pertinent story or experience to get their point across......you nailed it!

Feb 28, 2018 07:17 AM #23
Dale Taylor
Re/Max 10 New Lenox Illinois - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

I can always count on you to post valuable information hopefully buyers will get before they become clients. Thanks

Feb 28, 2018 07:26 AM #24
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

this is an excellent list of potential problems. Coaching in the beginning even before application should also include this. Thanks for your post

Feb 28, 2018 07:34 AM #25
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

As with Dorie Dillard , I had to get shots every week when I was young because I got poison ivy so bad. I'm still a fanatic at keeping an eye out for the evil weed when I'm in the woods.

So I totally understand your analogy - stay away from the bad stuff, buyers!

Feb 28, 2018 10:37 AM #26
Nick & Trudy Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtors, Philly Main Line

Gene getting rid of poison ivy is a chore, I listened to the guy on NPR and how he does it is a big deal. Good points for borrowers to know as they make application and move towards settlement.

Feb 28, 2018 10:54 AM #27
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Gene great advice what pitfalls to avoid, when I bought my first home my father gave me the down payment and he made sure it was in my account and I wrote the check....Endre

Feb 28, 2018 09:38 PM #28
Andrea Moore
The Mortgage Market of Delaware - Lewes, DE

Such great advice! The endless bank statement papertrail is one of my biggest headaches. Knowing all of this upfront as a buyer can really minimize the need for a lot of paperwork during the process.

Mar 01, 2018 11:06 AM #29
Leslie Currle
Alcova Mortgage LLC - Luray, VA
With you, every step of the way

Great advice, Gene!  Thanks so much for sharing.

Mar 02, 2018 08:52 AM #30
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Gene, your analogy is so correct. Doing any of the things you mentioned will make the process take much longer and make everyone involved, frustrated.  

Mar 03, 2018 04:10 PM #31
Rebecca Gaujot, Realtor®
Perry Wellington Realty, Adam Conrad, Broker - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Gene, great advice for buyers to heed... and you need to stay away from that poison ivy :)

Mar 04, 2018 06:57 PM #32
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Gene - as always, great advice.  It's so important to be "aware" of all the ways a mortgage can go south prior to approval. Ugh!

Mar 06, 2018 08:46 AM #33
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Congratulations on your feature recognition. This is excellent advice to share with prospective mortgage borrowers.

Mar 12, 2018 05:54 AM #34
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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