DO’s and DON’Ts

Dos Donts when purchasing a home with top Dallas Mortgage LenderWe’ll be honest – we mostly have “DON’Ts” when applying for a home loan and they’re extremely important.  Please take the time to read the details below and let us know if you have any questions. Oddly enough these are some of the most common reasons for undue stress in the 11th hour and a “rough” closing. The only “DO” we have is do call us immediately should you have to do any of the items below; we’ll council you on how to move forward and what documentation will be required for underwriting.

Don’t RePull Your Credit

Having your credit pulled will result in additional paperwork as every credit inquiry within 120 days of closing will need to be explained with a “Credit Inquiry Letter”.  And “yes” we do update the inquiries right before closing so don’t go finance all that new furniture the day before closing.

Don’t Open Any New Credit

Do NOT procure any new loans or get any new debt. Ex: don’t open any credit cards (even if zero balance), don’t buy a new car, don’t pull out money on your HELOC, etc.

Don’t Make “Random” Deposits

This section (in our opinion) is the biggest nuisance in the whole paperwork process – read carefully. Do NOT make random deposits. Any deposits that aren’t from an “obvious” source (like your employer, social security, the VA, the IRS, etc.) will be scrutinized and require documentation. So don’t deposit that $5,000 you have at home under your mattress – we can’t use it if you do. If someone owes you money – or just wants to help – don’t deposit their check (or accept cash); instead, call us and we’ll walk you through the details of what to do.

Don’t Move Money or Close Accounts

Don’t transfer money from one account to another and/or close bank accounts during the process. Title companies can accept multiple wire transfers and cashier’s checks from various accounts so there’s no need to “consolidate” your accounts. Transferring funds between accounts will require updating all account statements to show the money going to and from each account.  Moreover, if you close an account it makes it increasingly more difficult to get documentation when you’re no longer a customer.

Don’t Quit, Retire, or Give Notice

This seems obvious but it happens more than you would think. Do not quit your job, announce your retirement, give your two week notice, etc.. Mortgage Lenders are required to contact your employer to verify employment a few days before closing and one of the questions asks about the likelihood of your employment, and there could be a major problem if their response is anything less than absolute.

Don’t Get a New Job

Congratulations on finding a new job that pays you double – don’t start it until you’ll spoken with us to discuss the details AND see above about quitting.

Don’t Change Pay Structures

Changing pay structures – even for more money – could easily cause major problems with your approval.  Call us before making any change in your compensation.  Ex: going from salary to commission, adding additional OT, switching from W2 to 1099 Contracting, etc..