Dos and Don’ts During the Mortgage Process
Important Tips for Closing Your Mortgage Without Problems
The following Austin mortgage “Dos” and “Don’ts” are essential to closing your loan on-time, without problems. Please read carefully and call today to discuss your home financing: (800) 301-3405 or email Team@MaxLeaman.com. If another lender has you in a bind, Leaman Team can fix the situation quickly.
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 Leaman Team if your address changes from what appears on your loan application. As part of the loan process, Leaman Team will complete a rental and mortgage verification for all of your residences within the last two years.
- DO alert Leaman Team 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. Leaman Team 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 The Leaman Team 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 The Leaman Team 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 The Leaman Team 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 Leaman Team.
- 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 The Leaman Team. 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, Leaman Team 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.
Leaman Team wants to make sure your questions are answered. Please call Leaman Team today to discuss your home financing: (800) 301-3405 or email Team@MaxLeaman.com.