ON'T MOVE YOUR CASH/SAVINGS AROUND:
We have to verify all funds for closing including the source of those funds. Moving assets around can create a paper trail nightmare. The best advice is to leave everything where it is, even if the purpose of the move is to pool your funds for buying the house. After we verify your accounts and give you an "ok", then you can consolidate your accounts if you want. Always consult your Loan Originator or Processor before you move any funds.
We have to verify all sources of funds for the transaction. We will be looking at any large deposits into your asset accounts (checking, savings, money market, etc.). You should be prepared to document the source-perhaps a copy paycheck, bonus check, money from the sale of an asset, etc. If you have a question as to how, please call your Loan Originator or Processor.
If you are selling an asset such as a car, an antique, baseball card collection, etc, to come up with the cash for closing, please document the asset including the check the buyer gives you, car title and a bill of sale. Sometimes you will need to get a certified appraisal of the item.
Gifts from relatives are a very common item in the purchase of a home. However, there are certain ways a gift needs to be handled as to not create a paper nightmare for you. If you are going to receive a gift hold off receiving it until we have talked. Please carefully follow the instructions on our Gift Letter form for your particular type of loan.
BECOME A PAPER HOUND:
Save all of your bank statements and pay stubs from now until closing. We will need them. So please keep them handy.
DO NOT PACK ANY FINANCIAL PAPERS:
Keep all of your tax returns, along with any W-2's, 1099's, or K-1's and any other financial papers from the past two years in a handy place. If you sold a home in the past two years, have your (HUD-1) Settlement Sheet handy. You may have to produce an item that you did not expect.
REVIEW YOUR CREDIT REPORT:
The best way to get a jump start on your mortgage process is to know what your creditors are saying about you and the accuracy of the information! Review the report with your Loan Originator and report any inaccurate or OMITTED information.
Please do not change jobs during this process without your Loan Officer’s knowledge. The new position could jeopardize your approval for this loan.
CREDIT CARDS/NEW DEBT:
Do not apply for any new credit because that creditor will show up on your credit report and we will have to verify that there is no new outstanding debt. If you are planning to add a debt or pay debts off for closing, hold off until you have spoken with to your Loan Originator or Processor. We may be able to pay off those debts at closing, with no effect to your approval process. If you have paid off any debts recently, it may not show on your credit report and we will have to re-verify each creditor's current balance, which requires more time.