Loan Process Dos and Don’ts

To help avoid any delays with your loan approval, we have created a list of Do’s and Don’ts for you to follow during your loan transaction to make things as smooth as possible.

Do:

  • Continue to make your mortgage or rent payments on time
  • Stay current on all existing accounts
  • Continue to work for the same employer
  • Continue living at your current residence
  • Keep credit card balances at or below 40% of credit limits
  • Turn in all requested documents to your lender as soon as possible
  • Communicate, communicate, communicate! Call the lender BEFORE doing anything regarding your employment, credit cards, or assets
  • Inform you lender and title company of any changes in your marital status that will happen before close of escrow

Don't:

  • Change your circumstances from the information originally given on your loan application, if anything changes let the lender know immediately
  • Make a major purchase (car, boat, appliance, etc.)
  • Apply for new credit or loans of any kind
  • Quit your job or change employment
  • Co-sign for anything with anyone
  • Get your earnest money funds from a bank account that is not yours
  • Take cash to get a cashier’s check unless you can document it
  • Shred documents the lender may need for your file i.e., bank statements, pay stubs
  • Pay off any collections or charge-offs before consultation
  • Change bank accounts or banks unless advised
  • Consolidate your debt into fewer accounts
  • Start any home improvement projects
  • Deposit cash or non-traceable funds
  • Close credit card accounts
  • Borrow money
  • Transfer checking or saving balances from one account to another
  • Max out or over charge existing credit cards
  • Plan a vacation during your loan transaction without informing your loan officer
Loan Process Dos and Don’ts
Also note: if you are selling anything to raise money for your down payment prepare a bill of sale to document the transaction and keep a copy of the check or money order. For cash sales have the buyer sign the bill of sale and include their telephone number. If you are unsure or have any questions during this process, please call your Elpis Real Estate Boutique REALTOR® or Lender.‍
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