Home > Blogs > Sheila Goulart Siegel > Sheila Goulart Siegel's (sgoulart) Blog

Important! Things NOT to do during the loan process....

By Sheila Goulart Siegel

Mortgage and Lending with Synergy Financial Group, Inc.

July 01, 2011 07:56 AM

There are things you should never do during escrow, whether refinancing your current home or purchasing a home. Once you are qualified for a home loan, ANY change in the financial snapshot that is your loan application can change your approval.

Below is the advice I include in an "important information" document in my new loan set up package for each and every client:

During the process

Many times the lender will ask that we re-verify credit, income, employment and asset information. This can even happen after you have signed your final loan papers. With this in mind, we ask that you comply with the following items. Please do not apply for or obtain any additional credit. This includes real estate loans, auto loans, credit cards, 401K loans, personal loans, etc.. Co-signing on someone else's loan is also a problem. This even includes inquiries to your credit. Do not quit your job or change jobs unless it is in the same line of work, you have no job gap and it is for equal or more money. Please let us know if you anticipate changes like this as well as we can help you plan for them. Do not spend money unless it is necessary to do so (for monthly living expenses for example). Do not furnish your new home during escrow or buy new appliances. Wait until you close escrow so that your purchases do not jeopardize your escrow in any way. Do not change bank accounts or transfer funds between accounts. In fact, save as much as you can. The bank likes to see increasing bank balances. Keep in mind that ANY changes can affect your loan application and approval and can change or jeopardize the terms of the loan and the loan processing as we have discussed. Please call us if you need to make any changes and we will discuss options with you, in terms of timing and how this will affect your terms, if it will. Please make sure you continue to make all payments on time and keep copies of your paycheck stubs, bank statements and any bills we will be paying off with the loan. Be sure to make payments on all items before the due date, even if they are being paid off with the loan. Please call us if you have any questions.

Re-Blog

Comments(8)

Comment

Show All Comments

Sort:

Terri Poehler

Realtor - Coral Springs, FL

Coral Springs Real Estate Agent

Sheila, I had a buyer once, buy a shiny brand new car during the loan process. I almost lost my hat!

Jul 01, 2011 08:03 AM

Mary M. Kandell

Russell Real Estate Services - Sandusky, OH

I love your advice and that you include it as an important document file for your clients.

Jul 01, 2011 08:05 AM

Sheila, Just had to reblog. Thank you

Jul 01, 2011 08:17 AM

Sheila Goulart Siegel

Synergy Financial Group, Inc. - Mission Viejo, CA

Hi Terri- Crazy but I have seen that more than once... ahhhhh! :) I think that was something that originally encouraged me to create my up front information disclosure... thanks for commenting!

Thanks Mary! I appreciate your commenting! :) And thanks for re-blogging!!

Jul 01, 2011 09:52 AM

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL

708.921.6331 - 40+ yrs experience

Sheila: As a lender, I think we've all been in the position where a client shot themselves in the foot by doing something foolish spending-wise or credit-wise. With processing being as touchey as it is right now. You are wise to point out that it is only smart to include this info in a packet at the time of application. Having this info at their disposal to refer back to later is great ...

Gene

Jul 01, 2011 11:24 AM

Brenda Whitman, Live in Laramie Real Estate

Live in Laramie Real Estate, Laramie, Wyoming - Laramie, WY

Broker/Co-Owner, Laramie, Wyoming

Nice! I think this is one of the first posts I have come across regarding one of those things you'd think we all know but really don't! Hope you don't mind if I re-blog...

Jul 02, 2011 09:37 AM

Dave Roberts

Healdsburg Sotheby's International Realty - Healdsburg, CA

Thanks for sharing your guidelines for buyers. I know a few of my past clients violated some of your rules and I recall they spent some extra paperwork time trying to explain why they were car shopping and furniture shopping while the loan was in process. They didn't lose their loan, but I know the hassle was not worth it. They should have just hunkered down until the loan funded.

Jul 02, 2011 09:43 AM

Anonymous

Sheila Siegel

HI Gene Thanks for your comment. I also remind them to read it. And then verbally try to review it wtih them as well. I find that it is information overload for most people today to sit and listen through everything I have to say so I only hope that they take the time to read it....

HI Brenda Thanks for your comment. What a nice compliment too! :) Please do re-blog! And subscribe. I will do my best to keep the relavent information coming :)

HI Dave. Thanks for taking the time to respond. In this environment it may be even more important as some things are more challenging to "fix" these days.... Always good to remind clients of important details (especially since there are so many of them). :)

Jul 04, 2011 09:35 AM

Comments(8)

Sheila Goulart Siegel

Recent Posts