Applying for a Mortgage: DO’s and DON’TS

A few things to keep in mind when applying for a mortgage:

DO   Keep the originals of all your pay stubs, and any other important financial documentation. Prior to approval, you will need updated documents if they are 90 days or older prior to closing. Get paid by direct deposit? No worries just log onto your companies provider’s website and print all stubs requested from lender.

DO   Provide documentation ready on the sale of your current home — include the sales contract, closing statement and any others that you may have obtained.

DO   Be aware that opening new lines of credit can affect the approval of the loan.

DO   Be sure to notify your loan officer if you plan to receive gift funds for closing costs.

DO   Notify your loan officer of any employment changes such as employer or pay status (commission to salary, a recent raise or promotion).

DON’T   Make any major purchases during or prior to closing like new furniture, appliances or a new car. For, this could impact your qualification ratios.

DON’T   Obtain and/or deposit extra large sums of money without notifying your loan officer first. Many loan guidelines require documentation of where these funds came from.

DON’T   Open, close or transfer any asset accounts (e.g. transferring all the funds out of your checking account to your savings account) without consulting with your loan officer about the proper documentation required for your loan file.

DON’T   Increase or open any liabilities. This includes signature loans, credit cards or other credit lines during the process. For, this could impact your qualifying ratios.

A home loan is one of the most important financial decisions you will ever make, and choosing a lender you can trust is just as important. My credit union, FTWCCU, made the process smooth and easy when I applied for my mortgage!