Many homebuyers can’t wait to start buying items to fill their new homes after their purchase offer is accepted. But there are still a few hurdles to overcome before the keys are handed over. Here are a few things to avoid during the mortgage process, to make sure your home purchase goes as smoothly as possible.
Keep your documents updated as you receive them.
Whenever you provide your real-estate broker with a deposit, please forward Checking/Savings statement (even page 5 of 5 that may be blank) to your loan officer. Same goes for quarterly 401k statements, stock and bond statements and any other type of asset that is being used to qualify for your mortgage.
Don’t make an expensive purchase.
It's tempting to order that new sofa for your soon-to-be living room, but it's best to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewelry or vacations until after your closing. Financing that furniture with a store credit card or even one of your own credit cards could jeopardize your credit worthiness during a time it means the most. Using cash to purchase big items can also create a problem and effect your cash reserves when approving your mortgage.
Don't leave or get a new job. Lenders like to see a consistent job history.
Generally, changing jobs will not affect your ability to qualify for a mortgage loan - especially if you are going to be making more money, but for some people, getting a new job during the loan approval process could raise some concern and affect your application.
Don't switch banks or move money around.
As we review your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds. Changing banks or transferring money to another account - even if its just to consolidate funds, could make it difficult for the lender to document your funds. However, if it is necessary to move funds; please keep a detailed paper trail of the transaction(s).
Don't disregard your lenders requirements.
You may have been pre-approved for the loan but, in order to process your loan, you need to meet certain requirements. Your loan originator will need copies of your bank statements, W2's and other paperwork. It is up to you to get it to him or her as soon as possible. Failure to submit certain qualifying documents could cause you to lose your loan and the financing you need to buy your home.
Begin your homebuying journey with Group One Mortgage!