I recieve at the very least on a weekly basis great information from one of my mortgage guys. He never fails to get back to you, he answers emails quickly and he sends me great info. I thought I would share this with you all. I read it and thought well duh..but then had to rethink my snap comment. How many times have we been almost to even up to the day of closing and we have a buyer do one of the don't or they forgot one of the do's now I have to say I usually do a lot of the do's for my clients just to head off problems but you can't always control the don'ts. I know each area is different but maybe print this off or adjust it for your area it is a nice little handout (on top of the one I am sure their mortgage person has given them) to give your buyers. So thank you Mark for all you do! Sometimes we all need a reminder of the "well duh's" in our industry. ;)
DO the following actions to ensure a smooth mortgage transaction:
DO bring a cashier's check made payable to the title company for the amount of your closing costs.
DO alert us if your salary or other compensation changes from what is documented on your loan application.
DO notify us if your address changes from what appears on your original loan application. We will complete rental and mortgage verifcation for all of your residences within the last two years.
DOacquire homeowner's insurance with minimum coverage equal to the amount of your total loan or the replacementvalue of the house.
DO share the agent's name and phone number with your Loan Offcer at least 10 days
prior to closing.
DO keep documentation on any large and signifcant deposits into your bank accounts. This type of "paper trail" is compiled of copies of all paperwork necessary to prove a financial transaction: copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.
DO report if you transfer funds from one account to another. Provide records on such transactions.
DO verify that you have a clear termite inspection on the property. If the termite report is not clear, provide a receipt for treatment that shows the chemicals and the amount used for treatment.
DON'T do the following actions and you will ensure a smooth mortgage transaction:
DON'T acquire any additional lines of credit or make any large purchases on existing credit without first consulting your Loan Officer. As examples, purchasing a car or buying major appliances for your new home will negatively change your debt-to-income ratios.
DON'T change jobs without consulting us. A change in compensation could afect your ability to qualify. Borrowers must have a two-year history of bonuses and/or commissions to be counted as income. As a quality control check, lenders may verify employment on the day of closing.
DON'T co-sign with anyone to obtain a line of credit or make a purchase. The payment will show up on your credit report as an additional debt.
DON'T negotiate your contract with an allowance and expect to get money back at closing. An allowance can be used to pay closing costs and/or prepaids.
I am going to add: The following do's and don'ts will also prevent your Realtor from having a coronary!
Have a great Hump day everyone.
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