If you’re in the market for a home, you want to keep your financial ducks in a row. Make smart choices and be very careful about what you do and don’t do with your finances. Here are a few do’s and don’ts, but always talk to your lender before you make any big financial decisions at this time.
DO — Keep originals and all pages of pay-stubs, bank statements and other important financial documentation. Universal Lending is required to update any documents that are more than 90 days old prior to the closing of your mortgage loan. (This is required even if your loan is approved.)
DO — Provide all documentation for the sale of your current home, including sales contract, closing statement, employer relocation/buy-out program if applicable.
DO — Notify your Loan Officer if you plan to receive gift funds for closing costs.
DO — Notify your Loan Officer of any employment changes such as change of employer, recent raise/promotion, transfer, change of pay status (for example salary to commission).
DO — Make timely payment on all current debt obligations , including any current mortgage or rent, car, student loan, or credit cards.
DON’T — Change jobs/employer without inquiring about the impact this change might have on the approval of your loan.
DON’T — Make major purchases during or prior to closing, such as a new car, furniture, appliances, etc., as this may impact your qualification ratios.
DON’T — Obtain and/or deposit unusually large sums of money without notifying your Loan Officer. Many loan guidelines require full documentation as to the source of these funds.
DON’T — Close or open or transfer any asset accounts without asking your Loan Officer about the proper documentation required for your loan file, e.g., transferring retirement funds or funds from the sale of stocks into your checking or savings account.
DON’T — Open or increase any liabilities, including credit cards, signature loans or other credit lines during the loan process as it may impact your qualifying ratio.
Paying attention to these details will make closing on your home a lot easier.