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Important Tips

Here are some important tips for prospective homeowners when applying for a home loan. This can be critical to the approval of the loan. Here is a list of Dos and Don'ts for borrowers to be aware of when they are thinking about applying for a home loan.

Dos:

Keep all of your financial records in good order and available, be aware that in order to verify your income, underwriters will need the tax documents you have received from your employer, CPA and/or the IRS as well as your recent paystubs

Be sure to save all pages of your recent bank statements as you will need to supply the most recent two months when you apply. 

If you are receiving any gift money from a relative, they will need to sign a gift letter and they will need to provide their bank statements evidencing the source of those funds. 

If you are renting, on time payments are crucial and be sure to save proof of the monthly payments. 

Keep a close eye on your credit by making all payments on time. Late payments can have a dramatic impact on your credit score which can affect the terms of your financing and potentially prevent your closing altogether. 

Understand that things have changed. Underwriters require far more documentation than in the past. Even if requests seem silly or unwarranted, please remember that if they didn't need it, they would not ask for it.

Dont's

If at all possible, do not apply for any new credit beyond the home loan. Changes in your credit profile can affect the terms of your financing and potentially prevent your closing altogether. If you must apply for new credit, please consult with your Loan Officer, prior to applying. 

Do not change your job during the process. Any recent changes in employment are significant and should be discussed as early as possible. This includes a change from a salaried to commissioned or self-employed position. 

Avoid making undocumented deposits into your bank account. Primarily large, but sometimes even small deposits must be sourced unless they are identified as payroll related. Keep your deposits separate and small so that if the need arises, you are easily able to identify the source of the funds. 

Do not be afraid to ask questions. That is what we are here for. A home loan is likely the largest financial transaction in a person's lifetime, so please be sure to ask away. It will be our pleasure to provide the answers.

LendUSA LLC, DBA Mortgage Financial - NMLS #1938
170 Main Street, Tewksbury, MA  01876
Direct:  (978) 863-9555
info@mfsinc.com