50 THINGS NOT TO DO DURING THE LOAN PROCESS

By
Mortgage and Lending with Pinnacle Mortgage Lending

      I put this list of items NOT to do during the homebuying process a while back and thought I would share.  All of these examples are from actual transactions of mine.  I hope my pain can bring you all a little enjoyment.

 

Don’t lie to your lender- No seriously, people try and we find out everything

Don’t buy a car- you read that right, it has happened multiple times

Don’t close your credit accounts-this can actually lower your score

Don’t transfer your money to a different account-I know that we all like to make interest but if you move your money during the loan process it just causes a lot of paperwork on your end.  By the way $100,000 in a .3% interest bearing account for 30 days nets you a whopping $25.

Don’t deposit cash-Cash is impossible to track and lenders hate that.  Keep it in your sock drawer until after closing.

Don’t quit your job-Having a job when applying for a lot of money is kind of important, we require that you have a job the whole time

Don’t stop paying your bills-Sounds elementary but you would be surprised……

Don’t put items on layaway

Don’t apply for “same as cash” financing-This is still a debt, and a credit inquiry and could push you from approved to declined

Don’t buy a refrigerator or appliances-Every person who buys a home sees the greatest deal in the world on an appliance, it will be there after closing

Don’t remove or add a person to any of your accounts

Don’t decrease your hours at work-This can push you from full time to an unstable work situation and kill your loan

Don’t lie to your lender-This will be a reoccurring theme, we find out everything

Don’t assume you can “get away with something”-We ask you to verify everything multiple times, we will find out

Don’t talk to the seller of the house you are buying directly-This never ends well, you have a professional Realtor, use them

Don’t threaten your future neighbors-This has happened, I can’t make this stuff up

Don’t start moving in before closing-At least without authorization, you can get arrested….really

Don’t neglect to tell us that you had a bankruptcy, foreclosure, or shortsale- We will find out

Don't buy a boat-Had a guy pull up to signing pulling a new boat once, didn’t end well

Don't file for divorce-Really? Divorce needs a signature from a judge and may have child support or spousal support, lenders won’t lend to you until all of that is final

Don't file for legal separation-See #20 Don’t file for divorce

Don't change your name-Normally happens due to marriage but please wait until closing

Don't have a garage sale and deposit cash-See #5, don’t make us ask you for your garage sale Craigslist Ads, we will

Don’t sell a vehicle you don’t own and deposit cash- I have no words for this one

Don’t patrol a property that you have an accepted offer on and run off people trying to view it-That’s a fun call to get from the listing agent!

Don’t change jobs-I shouldn’t have to tell anyone this

Don’t switch banks-This causes twice the amount of trips to the bank for statements

Don’t lie to your lender-Just in case you missed the last two warnings

Don’t schedule elective surgery- Sellers don’t like to hear that you can’t close on time because of a nose job, this has happened

Don’t allow anyone to pull your credit-This freaks the bank out, we want to make sure that you are not adding debt you can’t afford

Don’t lie to your Realtor-C’mon, they are there to help you, trust them

Don’t buy an airplane-I will never forget that one

Don’t show up to closing with no idea what your rate is-You get a million disclosures from your lender, you should know

Don’t assume that the figures on your application will be the same at closing-Talk to your lender before you close, know what you are walking into

Don’t pay your Earnest Money with cash-BANKS HATE CASH, sensing a theme here?

Don’t open new bank accounts-Again, more paperwork to provide

Don’t spend your down payment money-Seriously, this has happen several times

Don’t lose your Earnest Money in a bet-His wife was not amused with this one, always take the points

Don’t open a business-Wait until after you close

Don’t file for bankruptcy- We will find out about this and it will kill every type of loan

Don’t get arrested-This goes for more than just getting a loan

Don’t try to renegotiate terms of the loan or sale at the closing table-I don’t care what infomercial book you are reading, the lender is not changing anything at this point

Don’t try to repair the house you are buying before you own it-See #41 Don’t get arrested

Don’t try to bribe the appraiser-I can’t make this stuff up

Don’t cry-I know this transaction is stressful but crying won’t help, good advise for the Realtors as well

Don’t burn trees or brush before closing- See #41 Don’t get arrested

Don’t bounce checks-Underwriters like to see that you can balance a checkbook before we write you a check for $200,000

Don’t charge up your credit cards-We check your balances at closing, we know everything

Don’t decide not to move to Oregon due to fear of Mt St Helens erupting-This has happened

Don’t lie to your lender

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