| | Just moving cash from one bank to another can create a major glitch in the mortgage application process. Below are some other common areas that require special attention during the processing of your mortgage loan:
Try not to move cash around.
During the loan application process, your First Home Mortgage loan experts will have to verify all the income and assets listed as part of your application. Moving these assets around can create a paper trail nightmare. The best advice is to leave everything where it is and discuss any changes you wish to make with First Home Mortgage Loan Officer.
Document large deposits.
Your First Home Mortgage Loan Officer will have to verify all sources of funds for the transaction. We’ll be looking at any large deposits into your asset accounts (checking, savings, money market, etc.). You should be prepared to document all sources -- perhaps a copy of a paycheck, bonus check, money from the sale of an asset, etc.
Selling something?
If you’re selling a large asset, such as a car, antique, baseball card collection to come up with the cash for closing, please document the sale. Keep everything, including the check the buyer gives you, car title or a bill of sale. Sometimes you’ll even need to get a certified appraisal of the item. Talk to your First Home Mortgage Loan Officer if you have questions. Document gifts appropriately.
Large cash gifts from relatives are very common when purchasing a home. If you are anticipating receiving a cash gift from a relative toward the purchase of your home, please notify your First Home Mortgage Loan Officer. Also refer to the Gift Letter form found in the First Home Mortgage document library. Save everything!
Become a paper hound. Keep all of your bank statements, pay stubs, tax returns, along with any W-2s, 1099s or K-1s 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. Try to create a file where you can consolidate all of your financial paperwork for easy access. When in doubt, just pop it in the folder. You never know when you may have to produce an item that you did not expect. Avoid new lines of credit.
It is a good idea to avoid any new sources of credit as it will materially change your credit report. Additionally, if you’re planning to pay off major credit debt before closing, hold off until you’ve spoken to your First Home Mortgage Loan Officer. We may be able to pay off those debts at closing without affecting the application process. Review your credit report.
The best way to get a jump start on your mortgage application process is to know what your creditors are saying about you. Request a free credit review with your First Home Mortgage loan officer. Tell us about a new job.
Making a career move? Make sure your First Home Mortgage Loan Officer knows about it as soon as possible so that we can ensure all appropriate changes are made to the loan application. In summary, speak with your First Home Mortgage Loan Officer if you anticipate making any significant changes to your financial picture prior to closing on your loan. Things you think aren’t a big deal could make a big difference in settling smoothly. We will do everything possible to ensure the process is easy and convenient, so the best advice is to keep your First Home Mortgage Loan Officer informed about anything that could impact your application. |
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