Friday, March 22, 2013

The Borrower's 10 Commandments for a Smooth Loan Process!

Congratulations if you have finally found your dream home!!  One of the next steps is applying for your mortgage loan.   This is an ongoing process and there are a few "dos" and "don'ts" that can play a huge factor in how smooth this process will be.  

Now, I can't promise everything will be perfect, but I can tell you that if you follow these simple "10 Commandments", your loan process will be much easier!!

The Borrow's Ten Commandments
  1. Thou shall postpone any career moves until after your closing.  If at all possible, try not to make a career move during the time between your mortgage application and the closing on the home you are purchasing. One of the factors mortgage companies consider is the length of the present employment; they are partial to stability.
  2. Thou shalt not apply for new credit.  Why not? Because applying for new credit changes what is called “debt-to-income ratios” (the relationship of your income to your debt). This could impact your ability to qualify for your mortgage loan and may initiate a new round of paperwork. 
  3. Thou shalt not incur new debt such as purchasing or leasing a new vehicle. This should go under the general heading of “no new debt.” As with any debt, this will change your “debt-to-income ratios” and may cause you not to qualify for your mortgage.
  4. Thou shalt not charge up your credit card balances.
  5. Thou shalt not make a very large deposit or withdrawal from your bank account.
  6. Thou shalt not change your mind after locking a rate.
  7. Thou shalt not co-sign for someone else’s loan.
  8. Thou shalt not spend your down payment money.
  9. Keep holy thy closing date and paperwork.  Please try to schedule vacations for AFTER your closing date. If you have started packing for a move, remember to keep out any bank statements,  tax returns, or other important paperwork. 
  10. Thou shalt not file for divorce prior to closing.  I know this is a sensitive subject, but filing for divorce affects your marital status in a court of law and this change of status may sometimes complicate the process when paperwork is being finalized.
If you have questions about any of the “Borrower’s Ten Commandments,” please call me.

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Michael Lasson
Sr. Residential Mortgage Lender

2140 Bagnell Dam Blvd, Suite 303B
Lake Ozark, MO 65049
Direct:  (573) 746-7211
Cell: (573) 216-7258

Fax:(573) 693-9141
NMLS #: 493712

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