Mortgage Loan Borrowers Top 5 "Hiccups" & Mistakes

Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI



Mortgage Loan Borrowers Top 5 "Hiccups" & Mistakes


"Wish Lists" are a hot topic for kids, no matter the time of the year.  Do you know any kid that doesn't have a list of things they're wishing for at the handy?


Did you know that Loan Officers often have Wish Lists too?  I can tell you that I most definitely do.



What's at the top of my LO Wish List? 


A smooth-flowing, successful mortgage process for each and every one of my borrowers.


Sadly though, hiccups and mistakes happen.  Both the real estate and mortgage process are conducted by humans, so it only follows that issues arise.  And it's also true that rare or unseen things can take place during a process.


But there are some hiccups and mistakes that are more commonplace or occur with more frequency.  Things that with a little preparation and planning can be avoided.


Below you'll find the hiccups and mistakes that I see borrowers commit most often after they've been pre-approved for their financing to buy a home.  Hopefully, by sharing them here I can help you avoid them as you move forward with your mortgage financing and home buying.


The 5 top hiccups and mistakes most commonly made by mortgage loan borrowers are:


     1.  Issue:  Accepting a gift or check for the Earnest Money written to someone NOT named on the Real Estate Contract or the Mortgage Application

     Tip:  If YOU are the buyer and mortgage applicant, the Earnest Money check should be written from YOUR funds.  The best way to look at the Earnest Money check is that it is an advance on your Down Payment ... or the funds you will need to Close on your loan.  


     Be Aware:  Checks from Non-Borrowing, Non-Buying parties can cause problems!


     2.  Issue:  Transferring monies/funds needlessly or repetitively from one bank to another ... or from one account to another (even if transferred within the same banking institution).


     Misconception:  That all funds needed to cover down payment and closing costs (known as "Cash to Close") must be accumulated, or deposited, to one (1) account.


     Truth is:  Separate accounts, separate investments, separate banks can all be verified and documented ... and their collective balances ... can be totaled to demonstrate the needed Cash to Close (funds needed for Approval/Closing). 


     3.  Issue:  Just before applying for their mortgage, borrower(s) work fewer hours while conducted their home search and contract negotiations. 


     Note:  For those borrowers working hourly-paid employment, this issue is of special importance.  Mortgage Underwriters look unfavorably at low year-to-date Gross Incomes reported on the most recent pay stubs required for Mortgage Application.


     4.  Issue:  Borrowers accept "Cash" or "Gifts of Cash", then deposit it into the banking account for which the funds for Closing later get verified. 


     Important:  Cash has NO acceptable means of being verified or counted as acceptable funds to Close by a Mortgage Underwriter.


     Tip:  Stop depositing cash into the accounts that you have designated and provided for Mortgage Application. 


     5.  Issue:  Borrower(s) change jobs prior to ... or after making ... application for their mortgage.  

     Important Advice:  Do NOT change employment in any way prior to consulting with me, your Loan Officer.  Consult with me, even if it's for a better job!


     Why:  It could matter (greatly) to a Mortgage Underwriter.  


How does it matter?

  • In terms of job history 
  • Employment length of time 
  • Verification of income (especially at the new position or new employment)


Remember the old saying, "It's easier to ask forgiveness than it is to get permission?" 


When entering or navigating the mortgage process, that is definitely NOT TRUE.


Always ... always ... check with your Loan Officer prior to making any decision or taking any action.  It's much easier, less stressful, and quicker to do things right the first time and not have to backtrack or perform "clean-up" later.


By talking to, then following the advice of your LO, you'll avoid the 5 common hiccups and mistakes listed above.  And THAT is at the top of my wishlist ...



* Looking for financing answers, options, solutions, and experienced assistance?  

Are you hoping to Buy, Refinance or purchase an Investment Property in New LenoxWill County, or elsewhere in the Chicagoland area? 


Contact me!  I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:


Gene Mundt
Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed
American Portfolio Mortgage Corp.
nmls #175656
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281




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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656


Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 


Your Referrals & Testimonials are Always Greatly Appreciated! 


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Re-Blogged 6 times:

Re-Blogged By Re-Blogged At
  1. Joseph Domino 480-390-6011 12/19/2018 10:28 AM
  2. Sally K. & David L. Hanson 12/20/2018 05:14 PM
  3. Fred Griffin, on leave of absence from ActiveRain 12/22/2018 01:17 PM
  4. Jeff Dowler, CRS 12/24/2018 07:37 AM
  5. Gita Bantwal 12/28/2018 04:00 AM
  6. Gabe Sanders 12/31/2018 10:00 PM
Lending / Financial
Illinois Will County New Lenox
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1st Time Buyers
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gene I just had #1 and #3 come up on a loan.  We ended up closing, but it created a lot of last minute stress.

Dec 19, 2018 09:10 AM #1
Jeremy K. Frost
Keller Williams Realty - Dripping Springs, TX
Associate Broker, CNE, CRS, ePro, PSA

Nothing beats insight from an expert. Thank you for sharing!

Dec 19, 2018 09:19 AM #2
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Asking advice from the professional  experts before making a  decision Gene when in the process of a mortgage transaction is a wise move . 

Dec 19, 2018 09:32 AM #3
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

HI Gene... superb post. I had a client who pulled #5 on me not that long ago. Fortunately we were able to take care of the issue and closed on time... but it was a bit stressful for a couple of days.

Dec 19, 2018 10:02 AM #4
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Hello Gene - you are always spot on! I get #2,4 & 5 and, of course the buyer who is always so proud of their newly finance truck!

Dec 19, 2018 10:58 AM #5
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Gene,
You always provide such great info.  Thanks for another one!

Dec 19, 2018 11:34 AM #6
Debe Maxwell, CRS | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Had a client who, right before closing, closed a credit card & that adversly affected her credit when they did the final pull. I told her not to do anything in regards to her credit but she didn't listen. She lost the house.

Dec 19, 2018 12:05 PM #7
Francine Viola
Coldwell Banker Evergreen Olympic Realty, Olympia WA - Olympia, WA
REALTOR®, In Tune with your Real Estate Needs

Great advice and a great wish list for lenders! This is a good educational post for buyers.

Dec 19, 2018 12:21 PM #8
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Gene, it amazes me how we keep repeating the same mistakes, probably because we forget fast. I wish this information was more in the main stream as "common knowledge" but sadly it is not, Endre

Dec 19, 2018 06:26 PM #9
Debe Maxwell, CRS | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Gene! Yes, they wound up buying something else. Funny but, it was MY house that they were buying and I had referred them out (as buyers). So, I didn't have to deal with the fall-out - just got the referral check in the mail after all was said and done! 

And, we had multiple Offers so, we just said, "NEXT" and we were done! 

Dec 20, 2018 10:45 AM #10
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

What appear to be minor hiccups can become a case of the flu in a hurry!

Dec 20, 2018 05:09 PM #11
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Gene,

Looks like you hit all the highlights here. The issue is that we do this every day and buyers do not, so good to let them know what to do & what not to do up front.

Dec 20, 2018 11:13 PM #12
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Gene.  Thanks for this information about mortgage loan mistakes.  A must read for all borrowers.

Dec 21, 2018 04:52 AM #13
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Gene, great advice, and borrowers have to be so careful to listen to their LO during a transaction!

Dec 23, 2018 07:42 AM #14
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Gene:

This is really terrific advice and education. I've had a number of this issues arise with buyers. Another issue is going out and putting a big purchase on a credit card before closing, or something similar.


Dec 24, 2018 07:24 AM #15
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Very smart advice to any and all buyers!  I'm going to share your post with a buyer who I need to keep in the loop :)

Dec 26, 2018 09:33 AM #16
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

These are things that buyers may not think of in the excitement of the home buying process. A great reminider that I will put to good use. Happy New Year, Gene.

Dec 26, 2018 11:26 AM #17
Andy Brown-Climer School of Real Estate
The Climer School of Real Estate - Orlando, FL
The Best Real Estate School in Florida

Gene, nice blog. Don't forget to make sure that you keep Google happy when you write and post a blog. Items such as keywords, keyword density, number of words, original content, backlinks, embedded links are all important.

Jan 06, 2019 04:38 AM #19
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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