10 Mortgage Commandments

#1) Thou shalt NOT change jobs, become self-employed or quit your job.

The reason that this is so important is if you would happen to change your job there is usually a certain amount of time that you would have to wait before you would be able to close. If you happen to quit your job and become self- employed then in order to be able to use your income we would at least need 2 years of personal tax returns with your new position and most loan programs require two years. If you decide to quit your job before closing and the lender will be using your income for qualifying it may cause your loan to be denied. Before any of this takes place please contact me and explain what you are planning on doing when it comes to your job.

#2) Thou shalt NOT co-sign a loan for anyone.

During the loan process, any changes to your credit report or status could negatively affect your ability to close your loan on time or at all. Co-signing any type of car loan, students loans, or other loans would result in inquires into your credit and additional financial responsibilities. All of these could result in loan closing delays or denials.

#3) Thou shalt NOT buy a Vehicle (or you may be living in it)!

Applying for credit to purchase a vehicle will be recorded as an inquiry into your credit by credit bureaus. This may decrease your credit score or decrease the amount of money that you may qualify for when purchasing a home. It is very important to avoid applying for these types of loan throughout the loan process.

#4) Thou shall NOT use charge cards excessively or make late payments on ANY of your accounts.

Excessive use of credit cards can have 2 negative affects on your credit rating. One, inquires will be recorded by credit bureaus and could decrease your credit score. Two, balances on credit cards exceeding 35% will affect your debt to income ratio and could decrease your credit score. Also, late payments of any sort can decrease your credit score, increase your home loan interest rate, delay loan closing, or cause loan denial.

#5) Thou shalt NOT spend money you have set aside for closing.

Most mortgage loans require 3 months of reserve money to be verified in your available financial accounts. Once it has been verified for use at close, spending these reserve funds may result in loan closing delays or even loan denial.

#6) Thou shalt NOT omit debts or liabilities from loan application.

Please be very honest and clear about ALL of your debts or liabilities early in the loan application process. Having the right information will allow me to provide you the best qualifying loan value. Unrecorded debts or liabilities that are found later in the process may affect the amount of money you qualify for in addition to causing delays or even denials of your home loan.

#7) Thou shalt NOT buy furniture, appliances, or household items before closing.

Although many people are anxious to furnish their new home, during the loan process is NOT the right time. Large purchases causing deductions in your banking accounts or additional debt on credit cards can negatively affect your loan process resulting delays or even denials.

#8) Thou shalt NOT originate any inquires into your credit.

As mentioned before, multiple inquires into your credit may result in decreasing your credit score. As this applies to vehicles, furniture, appliances, and household items; it also applies to ANY credit checks. Applying for additional lines of could negatively affect your ability to qualify for a home loan.

#9) Thou shalt NOT make large deposits without first checking with me.

Abnormal deposits or large deposits into checking, savings, or any financial account beyond normal payroll deposits must have money sources verified by Underwriting. Making these deposits could result in loan processing delays or even denials. If this situation applies to you, please contact me to discuss.

#10) Thou shalt NOT change bank statements.

Because the loan process requires a 3 month history of reserve funds, opening new financial accounts near a closing date may void the history. New bank accounts will not have the 3 month history available and cannot be used. This may result in loan closing delays or denials.