Important Tips for Closing Your Mortgage Without Problems
The following Austin mortgage “Do’s” and “Don’ts” are essential to closing your loan on-time, without problems. Please read carefully and call or email Max Leaman if you have questions: (512) 293-1239. If another lender has you in a bind, Max Leaman can fix the situation quickly. Max Leaman provides residential mortgage loans in most states.
DO the following actions to ensure a smooth mortgage transaction:
- DO bring a cashier’s check for the amount of your closing costs made payable to the title company closing your mortgage.
- DO notify Max Leaman if your address changes from what appears on your loan application. As part of the loan process, Max Leaman will complete a rental and mortgage verification for all of your residences within the last two years.
- DO alert Max Leaman immediately if your salary or your co-borrower’s salary (or other compensation) changes from what is documented on your original loan application.
- DO keep documentation for all significant deposits to your bank accounts. Max Leaman will compile a copy of this”paper trail” with all necessary paperwork to prove a financial transaction: copies of all checks, loan paperwork, deposit slips, & forms to liquidate assets.
- DO report if you transfer funds from one bank account to another. Provide Max Leaman records for any such transfers.
- DO acquire homeowner’s insurance with minimum coverage equal to the amount of your total mortgage amount or the replacement value of the house. DO share your homeowner’s insurance agent’s name and phone number with Max Leaman at least 10 days before closing.
- DO verify that you have a clear termite inspection on the property being purchased. If the termite report is not clear, provide Max Leaman a receipt for treatment showing the chemicals and the amount used for treatment.
DON’T do the following actions and you will ensure a smooth mortgage transaction.
- DON’T make any large purchases on existing credit without first consulting Max Leaman. DON’T acquire any additional lines of credit either. For example, avoid purchasing a car or buying major appliances; these purchases will negatively impact your debt-to-income ratios and compromise your mortgage transaction.
- DON’T change jobs without consulting Max Leaman. Changes in compensation could affect your ability to qualify for your mortgage. To count bonuses and commissions as income, borrowers must have a two-year history. Moreover, Max Leaman may be required to verify your employment on the day of closing.
- DON’T negotiate your contract with an allowance and expect to get money back at closing. An allowance can be used to pay closing costs and/or prepaids.
- DON’T co-sign for another person in order to obtain a line of credit or make a purchase. As a co-signer, this payment will show up on your credit report as an additional debt.
My consultation is always free and I want to make sure your questions are answered. Please call me today to discuss your home financing: 512-293-1239 (Cell) and 512-617-5636 (Office). You can also read this article in the Austin mortgage resources section.