Here are some very important dos and don’ts before you close on your loan. If you are uncertain about what to do at any point of the loan process, please contact me at: Deanne@mortgagemom.net to find out more.
- DO bring a cashier’s check made payable to the title company, for the amount of your closing costs.
- DO let us know if your salary or other compensation changes from what is on your loan application.
- DO notify us if your address changes from what appears on your original loan application. We will complete rental and mortgage verification for all of your residences within the last two years.
- DO acquire homeowner’s insurance with minimum coverage equal to the amount of your total loan, or for the replacement value of the house.
- DO share the agent’s name and phone number with your Prime Lending Loan Officer at least ten days prior to closing.
- DO keep documentation on any large and significant deposits into your bank accounts. Your “paper trail” includes copies of all paperwork necessary to prove a financial transaction: copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.
DO report if you transfer funds from one account to another. Provide records on such transactions.
- DON’T acquire any additional lines of credit, or make any large purchases on existing credit, without first consulting your PrimeLending Loan Officer. Purchasing a car or buying major appliances for your new home, for example, will negatively change your debt-to-income ratios.
- DON’T change jobs without consulting us! A change in compensation could affect your ability to qualify. Borrowers must have a two-year history of bonuses and/or commissions to be counted as income. As a quality control check, lenders may verify employment on the day of closing.
- 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 with an allowance and expect to get money back at closing. An allowance can be used to pay closing costs and/or prepaids