When buying a home, every little detail matters. Something seemingly innocent like changing jobs could jeopardize your mortgage approval. To help you stay on track, here are common do's and dont's when applying for a mortgage.
Don't CHANGE JOBS Don't end your employment, change jobs, or put in for a leave of absence without alerting your Loan Officer first. Anything you change in your finances will change your lending profile and potentially impact your loan approval. The change will be uncovered during the employment verification that takes to get approved. Bottom line, if you are thinking of making any changes to your employment or income, speak with your Loan officer first. Don't MOVE YOUR CASH/SAVINGS Lenders are required to verify all funds for closing, including the source of those funds. Moving assets around between multiple accounts can create a paper trail nightmare. The best advice is to leave everything where it is, even if the purpose of the move is to pull your funds for buying the house. After your accounts have been verified and you loan is approved, you can consolidate your accounts if you want. Always consult your Loan Officer before you more any funds. Don't TAKE OUT LARGGE DEPOSITS Lenders must verify all sources of funds used in a mortgage transaction. For any large deposits ($1,000 or more) into your asset accounts (checking, savings, money market, etc.), you should be prepared to document the source. This could be a copy of the paycheck, bonus check, gift funds, etc. Before you make any large deposits, speak with your Loan Officer for instructions on how to do it right the first time. Don't MAKE LARGE PURCHASES Any assets that are used to qualify you for the financing of your home should not be used to make a large purchase without consulting with your Loan Officer prior to making the purchase. The final figure you will need for closing is not finalized until typically the week of settlement and you want to ensure you have the funds to require a consumer to have reserve funds after the down payment and closing costs are accounted for in order to qualify. If you dip into your funds prior to settlement, it may jeopardize the final approval of your loan and possibly going to settlement on your home.
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