Getting pre-approved is a very important step toward becoming a new homeowner but here are a few actions you can take to help keep your home purchase on track.
Pay all of your bills on time.
Use a personal check to pay earnest money. If your purchase agreement includes earnest money, use a personal check from your own checking account to pay it, and maintain copies of the check.
Do not change jobs. Your employment will be verified twice while your loan is in processing. Any job transfers or changes in your employment that we don’t know about will raise questions in underwriting. Even if you’re offered a higher paid position in your established job field, please talk to us before officially making the switch.
Avoid opening new credit accounts. Don’t buy a bunch of furniture before your loan closes. Or a car. Or a boat. Or anything else that could hurt your credit score or affect yoru finances. Big changes to your credit or debt can turn your loan approval upside down. And even if they don’t, they’ll trigger additional documentation and possibly delay your closing.
Don’t close or overuse your existing credit accounts. Big purchases could increase your monthly minimum payments and affect your loan approval. Closing an account with an excellent payment history could actually cause a temporary dip in your credit scores.
Keep your bank accounts in good standing. Maintain your reserves, keep your balances positive and avoid transfers and large non-payroll deposits. If you plan on receiving a monetary gift from a family member, contact us to find out what documents you’ll need to provide.
Don’t pack important documents like pay stubs, bank statements, and any other documents that might be needed to update your loan file. Your file will be reviewed throughout underwriting to ensure it continues to meet the terms of your approval. Don’t be alarmed if we request additional documentation at several points along the way.
File your taxes. If you earn taxable income but haven’t filed taxes in the past two years, let us know immediately, even if you received an extension. We are required to receive tax transcripts directly from the IRS in order to close on your home loan.