Tips when applying for a Mortgage

Here are a few quick tips to remember when applying for a mortgage.

• Do NOT make any deposits over $1000 into your checking or savings account for the two months prior to applying for a mortgage unless they are payroll and retirement funds OR you can document where the money came from. Large deposits are a "red flag".  If unable to verify where the funds came from this can disqualify all the funds in the account.

• Do NOT move money between accounts.

• Do NOT open new bank accounts during the mortgage process.

• DO be honest with your loan officer about the source of all funds. The loan officer can't help if they don't have all the information. This could pop up as a real problem later in the transaction and potentially kill the deal.

• Do NOT run up charge accounts or open new credit during the mortgage process.

• DO explain to your loan officer any negative credit you have.  If you had a bankruptcy, explain what happened same with judgments, collections, etc.  These items don't necessarily make you ineligible for a loan if there were extenuating circumstances such as the death of a wage earning spouse, etc.

• Do NOT change employers during the mortgage process (this means until the loan is funded and recorded).

• Round up all the following items and have them ready:
• W-2's for the past two years for all parties on the loan
• Pay stubs covering the last 30 days for all parties on the loan
• Bank statements for the last 2 months for all accounts you will be using.  We need all the pages, even if they are blank. Statement pages are numbered so we know if a page is missing.
• Federal tax returns for the last 2 years for all parties on the loan

• Do NOT write notes on any documentation provided.  If you're trying to explain something, take a copy of the original and then write on the copy when you submit it.  The originals provided need to be clear concise, unadulterated.

• DO get together employment history (including address & phone no.) and address history for the past 2 years. Be prepared to explain any gaps in employment of more than 30 days.

• DO respond to requests from your loan officer or their processor within the same day.  Your file is "suspended" until you respond. Which means it's just sitting on the corner of a desk waiting for you to get back with the requested information.

• COMMUNICATE !!! This is the biggest key to a successful result.  Let your loan officer know of anything going on that could create a "snafu".