Keep Your Financing On Track
While you are going through the home buying and mortgage loan process, it is really important that you don’t make major changes to your income or the way you manage your credit as it could seriously impact your ability to get a mortgage. If you have a situation that requires you to deviate from the suggestions below, check with your loan officer in advance and get advice how to minimize the impact.
Pay your bills on time, no matter what.
Get your taxes filed in a timely manner and ensure all recent years are also properly filed.
All funds that will be part of the transaction need to be carefully paper trailed for the underwriter. Any cash funds that you are intending to use towards your down payment or closing costs should be placed in a bank account as early in the process as possible because these funds may need to “season” in your account over a two to three statement-cycle period to be usable.
If you are receiving gift funds towards your down payment, speak to your lender and follow their instructions exactly for how and when to do the transfer of funds (wire, paper check, etc.) and what paperwork needs to be provided. Do not have anyone give you cash.
From the beginning of the process, keep a folder and place copies of your lender-needed documents within, such as paystubs and bank statements as the new ones are issued. Keep all numbered pages of your statements, including any blank or seemingly useless pages, as the underwriter will want a complete copy.
Lots of paperwork will need to be gathered from you during the course of your loan being underwritten, some early on in the process, some closer to the closing. As you are packing your belongings and preparing to move, make sure that you keep your paperwork from the last several years handy (tax returns, W- 2s, etc.).
For a few thoughts on the subject by HouseLogic, click here.
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