While some of these may seem obvious, there are a few not-so-obvious financial choices you can make during the mortgage process that may slow the process or worse.
On the credit side:
- Do not open any new accounts and do not close any existing accounts; each of these moves can and will lower your credit score.
- Do continue to make all payments on time.
- Don’t payoff collection accounts without speaking to your Mortgage Loan Originator first. You may not need to pay them off; there may be an easier way and we want to be sure you are doing the right things to improve your credit score.
- Do NOT co-sign a loan for anyone. This will lower your score temporarily and the new payment will be counted against you for qualification purposes until you can prove the other party has made 12 consecutive payments.
On the money side:
- While Cash may be king- it is not in the mortgage world- Do not make large cash deposits. We need to verify where the funds are coming from and will review your last 2 months statements.
- Do not transfer money between accounts; this will cause extra paperwork to verify sources of deposits. In general – avoid any unnecessary transactions.
- Avoid overdrafts or negative balances in your checking account.
On the Job side:
- Don’t change jobs! While this seems obvious- it does happen more than you would think. It may not be a problem, but have the conversation with your Mortgage person before you do.
On the paperwork side:
- Do keep the most recent few months bank statements handy, any lender will need at least 2 months, and ALL pages of the statements. Missing pages will slow the process down
- Do keep your paystubs. As an industry we like to see 1 months’ worth along with 2yrs w2s.
- Do NOT staple your paperwork, while it may seem nice to hand things over on paper organized and stapled together – Staples cause problems. Our industry prefers to be paperless, so any paper will need to be scanned. If you hang around a mortgage office long enough, you will hear someone cursing staples.
- Do be sure to copy both sides of 2 sided original
- Do make sure any scans or copies are complete. Cut off pages, partial pages or blurry documents will probably be asked for again.
- PDFs are great and are welcomed, just be sure they have what your lender requires. You would be surprised how often clients send print outs or screen shots that do not have a bank name, or even our clients name on them.
Much of this can be summed up by saying: Consult with your mortgage loan originator before you make any financial moves. It is easier to document things before the event and much easier to avoid disasters with a quick phone call and conversation.
Robert Rauf is a licensed mortgage Loan Originator (NMLS#248937) At HomeBridge Financial Services, located in Toms River, NJ.
Have a great week!
Robert Rauf
Mortgage Loan Originator NMLS# 248937
http://www.homebridge.com/RobertRauf
or my blog: http://activerain.com/blogs/rrauf
Office: (732)908-4868 Cell (732)740-0175
RRauf@HomeBridge.com
www.RobertRauf.com
Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 16 Madison Avenue, Building 2 Suite 2D Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood Bayville , Manchester 08757 08733, Manahawkin 08050, Robert Rauf is a Licensed Mortgage Loan Originator in New Jersey.
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