When going through the mortgage process for a purchase or a refinance, there are many things you should and shouldn’t do. With that said, here are some things you should do and don’t do during the mortgage process.
- Ask questions of your Mortgage Advisor and have them explain the entire loan process from completing a loan application to close of escrow.
- Tell your Mortgage Advisor of any possible changes that may occur after completing your loan application, like changing jobs or moving funds from one bank account to another bank account.
- Pay all your bills on time and if you are refinancing, keep making your mortgage payments when due until your refinance closes.
Keep copies of all your new pay stubs and bank statements during the loan process. You may be asked to supply updated documents during the loan process.
- Promptly provide to your Mortgage Advisor any documents requested by the underwriter so your loan keeps moving through to closing.
- Wait for your new loan to close before buying new furniture or a new car.
- Notify your Mortgage Advisor of any travel plans during the loan process.
- Review the disclosures and loan documents carefully and ask questions if you don’t understand the paperwork.
- Make any large or unusual purchases during the loan process without consulting your Mortgage Advisor. If you run up your credit card balances, you could possibly not qualify for a new loan or if you use too much cash to make the purchase, you may not have enough money for the down payment or meet the post-close reserve requirements.
- Go on vacation without having access to all your paperwork and important documents that could be required during the mortgage process. Your Mortgage Advisor may need documents from you very quickly to keep your loan on track for an on-time closing.
- Quit or change your job during the mortgage process.
- Transfer money from one bank account to another without consulting your Mortgage Advisor. Transferring money is okay, as long as there is proper documentation showing withdrawals and deposits.
- Close or open new bank accounts.
Things to Consider During the Mortgage Process
There are many things you should and shouldn’t do during the loan process. Just be mindful that any changes in your credit, employment or assets could jeopardize your loan approval. Having open communication with your Mortgage Advisor through the mortgage process is critical.
Be organized and have your paperwork ready when applying for a mortgage. You will be asked for many documents such as paystubs, bank statements, W-2’s, and tax returns.
Quick and Responsive
If your Mortgage Advisor request updated bank statements, pay stubs or other paperwork, you should deliver them to your Mortgage Advisor quickly. When your loan has outstanding conditions, the loan approval is on hold until the underwriter receives all conditions. Keeping the loan closing on-time and as scheduled is better for you and everyone in the process.
Keep your credit perfect during the loan process by making your payments on time and not making any purchases above your normal spending habits.
Once you complete your loan application and supply your bank statements. DO NOT move money around until you speak with your Mortgage Advisor. They will assist you in making sure that you obtain the proper documents to paper-trail the movement of funds from one account to another.
Employment and Income
Aside from good credit and assets, your income is the number one thing helping you qualify for a mortgage. If you plan on making an employment change during the loan process, you need to speak with your Mortgage Advisor so you can plan your loan around the change in employment. A change in employment could delay your loan closing.
At California Mortgage Advisors, Inc. we know the mortgage process inside and out. If you have any questions on the mortgage process, please feel free to contact us. Our Mortgage Advisors are available at (800) 927-6560 to answer your questions.