I (Jared) grew up in a strict household. I was constantly being told what to do and what not to do.
DROVE. ME. NUTS.
It's always seemed like there were more "DON'Ts" than "DO's". It turns out that my parents just loved me and wanted the best for me. I can see that now.
My mortgage banker partner and I care about our buyers and want what's best for them. Like a lot of things in life, there are more "DON'Ts" than "DO's" once you've found the right house and have it under contract to purchase.
If you want a smooth transaction and (hopefully) no issues with your mortgage loan going through, here is a list of what to do and what not to do...
DON'T apply for new credit. You're risking your loan if you do.
DON'T transfer balances or refinance any existing debt. Please wait until after closing to do this.
DON'T make any large purchases on credit cards. I'm talking about a car, appliances, or a large charge on any card.
DON'T pay off any existing loans or large credits. Again, this can wait until after closing.
DON'T close or open any investment or retirement accounts.
DON'T have anyone pull your credit and don't give our your social security number. This can lower your credit score and lead to either a higher interest rate or even a denial of your loan.
DON'T quit your job. Seriously, this has happened before. Without a job there is no income which means there is no loan.
We're hoping that you'll get the idea here. At closing you will sign a document that states nothing has changed in your financial picture. Your credit report will be pulled again by your lender a day or two before closing, so anything you might have done will be seen.
DO keep all of your bills current.
DO continue to make all of your payments including car, rent, credit cards, etc.
DO let your lender know of any changes in your situation, even if you think it's a minor change.
DO keep every deposit slip, bank statement, check stub, etc.
DO keep your current job until after closing.
Years ago before the real estate bubble burst it seemed that all you needed was a pulse and a signature to get a loan.
Heck, when Amanda and I were flipping homes we would get "no doc" loans, where we basically told our lender (not the one we use now) how much we made and how much we needed and we would get a loan.
Low credit scores weren't an issue back then. A lot of the things listed above weren't as important as they are today.
Today it's a lot tougher to get a mortgage, and in all honesty, we would rather have it that way.
When you get a mortgage today your lender/mortgage banker is going to ask for a LOT of things from you. They need documentation for everything!
It's not that they want to, it's because they have to.
We work very closely with a trusted mortgage banker that will be more than happy to walk you through every step of the lending process. Feel free to give us a call and we can connect you with him.
Thanks for reading and I hope you found this information valuable.