Below are a few reminders of "do's and don'ts" before you close on your loan. If you are uncertain about what to do, please call our office for guidance.
- DO bring a cashier's check made out to the title company if your amount due is over $1500.
- DO notify us if your salary or other compensation changes from what is noted on your loan application.
- DO inform us if your address changes from what appears on our original loan application. We will complete rental or mortgage verification for all your residences within the last two years.
- DO obtain homeowners insurance with minimum coverage equal to the amount of your total loan or the replacement value of the house.
- DO keep documentation (or "paper trail") on any large deposits into your account. A "paper trail" is composed of the copies of all paperwork necessary to prove a financial transaction: copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.
- DO notify us if you move funds from one account to another. Provide a "paper trail" on transactions.
- DO make sure you have a clear termite report on the property if you are purchasing an existing property and obtaining a FHA or VA loan (for conventional loans and alternative loans this is optional). If the termite report is not clear, provide a report that confirms treatment and the chemical amount used for treatment.
And, here's what NOT to do...
- DON'T acquire any additional credit lines, make any large purchases on existing credit, or transfer any credit card balances without first consulting us. For example: Purchasing a car or buying applicances for your new home will change your deb-to-income ratios.
- DON'T change jobs without consulting us. A change in compenstaion may affect your ability to qualify. Borrowers must have a two-year history of bonuses and/or commissions to be counted as income. Lender may verify employment on the day of closing as a quality control check.
- DON'T co-sign with anyone to obtain a line of credit or make a purchase. The payment will show up on your credit report as an additional debt.
- DON'T negotiate your contract without talking to your loan officer first.
- DON'T negotiate your contract with an allowance and expect to get money back at closing. An allowance can be used to pay closing costs and/or prepaids.