There are very specific requirements for loan guidelines during the mortgage process. Making any change could mean the difference between loan approval or loan denial. Here are some things we recommend buyers DO NOT do during the loan process:
DO NOT Deposit Cash | Cash stuffed in a mattress, or buried in the back yard can present a challenge if deposited. It is difficult to “prove the source” of cash, and the source of any large or unusual deposits are required to be verified. Discuss any cash with the loan officer.
DO NOT Make Any Large/Unusual Deposits Without The Knowledge Of The Loan Officer | Any large/unusual deposit will need to be documented from it’s source with a paper trail. Underwriters may question any deposit even if it is not considered large or unusual depending on the loan program requirements and circumstances.
DO NOT Quit A Job | Employment may be verified up to the day of settlement.
DO NOT Make Large Purchases Or Apply For New Credit | Credit monitoring will be done during the loan process. If monthly balances/payments are increased, or new debt/loans are opened, a loan may be impacted.
DO NOT Stop Making Timely Payments | Falling behind on payments can impact a credit score, which may impact the loan.
DO NOT Spend Savings On Other Things | Spending money put aside to purchase a home could lower available “reserves”, which can sometimes be required.
DO NOT Discard Pay Stubs Or Bank Statements | Pay stubs and bank statements are key documents for proof of employment, and proof of sufficient assets They will be requested in the application process.
DO NOT Listen To The Mechanic, Dentist, Or Eye Doctor | Would one take advice from their lender about their car, teeth or eyes? When expert mortgage advice is needed, contact Northeast Equitable Mortgage.