Secrets to a Smooth Loan Process

There are certain “Do’s and Don’ts” borrowers should be aware of when applying for a loan. During the application process, any changes in your status as a borrower can affect the ultimate outcome of the underwriting process. It’s no secret that the loan process can go from smooth sailing to rocky waters if all parties don’t communicate from beginning to end. If you are trying to decide about whether to do anything out of the ordinary during this time, consult your loan officer.

Do – maintain all accounts as current/paid on time. For example: mortgages, car payments and credit cards. Still continue to pay those accounts that might be closed or paid as part of the loan transaction.

Do – keep copies of all recent pay-stubs, bank statements and financial transactions or receipts.

Do- retain copies of all tax documents and business licenses.

Do- make sure that your rent is paid on time and paid by check or money order.

Don’t – quit your job or change jobs to a position in another line of work or for less pay.

Don’t – allow other parties to make inquiries on your credit report. This can lower your credit score.

Don’t – make large deposits or transfer funds if at all possible.

Don’t – co-sign for anyone or complete any other credit applications.

Don’t – make any large purchases or take on additional debt. For example: buying a new car.

Don’t – charge additional debt on your credit cards.

Don’t – any legal action, lawsuits or claim bankruptcy.

Don’t – join credit counseling and debt consolidation programs.

Don’t – begin remodeling or any other home improvements that are not a condition of the loan.

If you communicate with your loan officer, most problems can be prevented easily which will lead to a smother loan process and closing.

Getting your mortgage is as easy as