The beginning of the process is a good time to go over some important details to help ensure a smooth and successful transaction. Regardless of whether you’re a first-time home buyer or you’ve gone through the mortgage loan process many times before, these are some important things to keep in mind:
- Try not to allow any new credit inquiries on your credit report. Credit scores can be lowered if there are such inquiries.
- A new copy of your credit report may be pulled within 72 hours prior to closing; any changes will require explanations and possibly result in your loan being delayed.
- Try not to increase the balances of any of your existing credit accounts; it’s best to put a hold on all credit transactions.
- Try not to make any job or income changes.
- Don’t make any major purchases that could change your financial picture.
- Be careful to not allow any overdrafts to your checking account.
- Be sure that you are up to date on all income taxes.
- Any large deposits into your bank accounts will require source information, if they aren’t specifically identified on the statement (such as payroll deposits) so make copies of checks and be prepared to offer explanations (i.e. brother repaid $300 I loaned him last Christmas, etc.) Further documentation could apply depending on the source and size of the deposit.
- Save all new paystubs and bank statements; you may be required to provide updates prior to closing.
- Notify your mortgage broker/loan officer of any plans to be out of town at any time during your escrow period.
- If you make any changes regarding the details of your loan, such as the source of your down payment funds, the amount of your down payment, change of insurance agent, etc., please contact your mortgage broker/loan officer immediately to avoid last minute complications and violations to the guidelines of the loan program.
- Check your email/mail often, to ensure prompt receipt of time sensitive documents or requests for information. Delaying their acknowledgement and return could delay your appraisal or closing docs, depending on where you are in the loan process.
Proper planning and expectations can help make the home loan run smoothly.