Tips To Remember During The Loan Process

  1.  
    Provide information requested by the loan agent as soon as possible.
    This helps get your loan process started and helps determine early if there are any challenges that need to be addressed.

  2. Keep debt to a minimum.
    Don’t buy any big ticket items and try to keep all spending to a minimum. Reserve funds for the closing, even if you think they aren’t needed. The funds you have in reserve may be required and they will also strengthen your overall file.

  3. Don’t move your money around.
    Lenders need to be able to see your funds verified with bank statements. Your “earnest money deposit” check that you wrote with your offer must be from an account that contains the funds and can be verified with bank statements.

  4. Keep all bank statements and deposit receipts.
    If you have to move money from one account to another, keep a paper trail – statements showing the move and deposit receipts to show which account the funds went into.
  5.  
    Don’t put unnecessary funds or untraceable funds into your bank account.
    If a deposit shows up that is not noted as payroll or something similar, a lender will assume you borrowed the money and it may change the dynamics of your loan.  If the money is being gifted, the lender will need a gift letter from the donor of the funds and the entire paper trail to support it.

  6. Don’t make job changes.
    If you are considering doing so, please contact your loan agent to discuss the ramifications. Changing jobs may affect your ability to be approved for a loan.

  7. Be prepared.
    Until the loan funds and the deeds record, be prepared to supply information. Loan approval is always considered conditional loan approval, meaning it is subject to the lender’s final review of conditions. Sometimes there are last minute questions and or requests for information that come up.


Courtesy of Michael DiMaggio, Wells Fargo Home Mortgage.

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