The Do’s and Don’ts of the Mortgage Process
CREDIT & NEW DEBT • DO: Discuss any credit opportunities with your Loan Officer, prior to taking on additional debt or closing out active accounts. • DON’T: Apply for any new credit, such as automobile or personal loans, or credit cards before discussing with your Loan Officer. Rates and programs are determined by your credit score, and a drop in score could change the options available to you OR jeopardize your approval. EMPLOYMENT CHANGES • DO: Discuss any changes in employment with your Loan Officer, prior to making any final employment decisions. • DON’T: Abruptly change employment, or leave your employer, without first discussing with your Loan Officer (this also applies any changes in pay structure). INSUFFICIENT FUNDS • DO: Maintain positive balances in all asset accounts. • DON’T: Overdraft funds, as this can indicate poor money management, even if you have overdraft protection. EXIT PROPERTY • DO: Provide your ratified sales contract and Closing Disclosure (or Rental Agreement when applicable) on your current property to your Loan Officer upon execution. FINANCIAL STATEMENTS • DO: Provide income and asset statements upon request by your Loan Officer throughout the process. • DON’T: Withhold documentation as this could delay your loan approval or settlement. LARGE DEPOSITS • DO: Provide documentation for any large deposits outside of your payroll. Keep copies of all checks, bills of sale, and any additional documentation necessary. • DON’T: Deposit cash or any large funds without associated documentation. LIQUIDATING ASSETS • DO: Provide documentation of any liquidation of 401K, stock accounts, CDs, no later than 45 days prior to closing. • DON’T: Wait until days before closing to complete any liquidation, as this will delay settlement. GIFTS • DO: Discuss any gifts with your Loan Officer, prior to acceptance, to ensure the gift is appropriately documented and verified as an acceptable donor. • DON’T: Accept any cash gifts.
The financing of your new construction home presents a thorough analysis of personal finances during the building process. Ongoing conversations with your Loan Officer along with these simples steps, will ensure an easier home buying experience.
For more information, contact your NVR Mortgage Loan Officer. NVR Mortgage Finance, Inc. NMLS ID# 1127
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