Do's and Don'ts for a Smooth Approval

Tips for a Smooth Loan Approval:

• Do keep original and updated pay stubs, bank statements, investment account statements, W-2 forms, and other important financial documentation. Current supporting documentation may be required and updated prior to the closing of your mortgage loan..
  
• Do provide all documentation from the sale of your home when proceeds will be used for down payment on your new mortgage.
  
• Do notify your loan officer if you plan to receive and use gift funds for your down payment. An additional form must be completed and must accompany a copy of the check showing funds transferred to you, and a copy of the deposit slip showing the funds were deposited to your account. Specific paper-trails must befollowed, so ask your loan officer for details BEFORE transferring funds.
• Do notify your loan officer of any changes in your job, income amount, job promotion, location transfer, or change in method of income (i.e. from salary to commission).
• Do disclose all debts that you are obligated to pay if they are not being reported on the credit report (i.e. personal loans to family members or employer, property taxes on real estate where there is no debt or where owner financing “real estate contracts” occur, etc.
• Do return all original signed disclosures along with the original signed loan application to your loan officer along with the supporting documents requested for approval as soon as possible. A delay could result in a postponed closing.
• Do Not change employers or the industry in which you work without inquiring about the impact this change may have on your mortgage loan.. A second verification of employment will be conducted prior to closing to insure there has been no changes that will affect your approval.
• Do Not make any major purchases during the processing of your loan or prior to closing (i.e. furniture, a new car, major appliances, electronics, etc.). If in doubt, ask your loan officer first before purchasing anything that might impact your monthly debts used in qualifying. A second credit report will be pulled prior to closing to verify that there has been no additional changes that could affect eligibility.
• Do Not obtain and/or deposit unusually large sums of money without notifying your loan officer. FNMA/HUD guidelines require documentation as to the source of theses funds which may include a copy of a bonus check, tax refund, insurance settlement, or a gift letter as discussed above. All irregular deposits on the statement and its source will need to be paper-trailed.
• Do Not close, open or transfer any asset accounts without providing proper documentation. For example, transferring money in stock or retirement accounts to a checking or savings account would require supporting documentation. Ask your loan officer first for specific details.