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Top 5 Mortgage Don’ts

Getting ready to apply for a home loan can be exciting, and overwhelming all at the same time. You may know what to do when applying for a home loan, but you may not know what NOT TO DO during the escrow process. Unfortunately, many buyers in escrow make detrimental financial moves before actually closing the loan on their new home purchase, causing delays and sometimes cancellation all together. Be sure to avoid these Top 5 Mortgage Don’ts before and during the escrow process to eliminate any delays in your loan funding.


1.Don’t Pay Off Bills
Your loan officer will provide specific instructions on which bills to pay down, and which bills can remain untouched. Your loan office will show the most efficient way to pay off bills so that there’s proof that the bills have been paid down, or paid in full. During or prior to opening escrow on a home purchase, be sure not to increase the balance on any current credit cards or fall behind on any payments.


2.Don’t Change Jobs
Changing jobs before or during the loan process will slow your loan approval, especially if the job is in a different line of work or at a lower rate of pay. More information regarding your new employment will need to be provided, which can slow down, or prevent the loan from being granted all together. For hourly employees, keep working hours consistent. Any change in hours worked, will trigger the loan originators to need more information regarding the changes


3.Don’t Make Major Purchases
Avoid high-price consumer purchases during the escrow process, such as purchasing a new car, or buying expensive furniture pieces for your new home. Increasing your consumer debt and applying for credit may torpedo your ability to afford the home.


4.Don’t Move Your Money
Be sure to keep your money in the same place it has been. Do not change banks, or move money to and from accounts without reason. Do not make undocumented large cash deposits into any accounts. These deposits are usually hard to trace and will raise a red flag. If you make cash tips, be sure to keep a detailed tip log to match the bank deposits. All deposits that aren’t payroll or direct deposits income must be documented and sourced.


5.Don’t Take Unpaid Time Off
Avoid scheduling any unpaid time off for vacation or other leisure’s. Keeping consistent pay stubs and direct deposits will help to avoid triggering red flags. Schedule any unpaid time off after the close of escrow, to avoid any delays.

About the Author:

When choosing the Lisa DiNoto Group, clients can count on the “DiNoto Factor” service, built on customer satisfaction, client education, strategic planning, Internet marketing, experienced negotiations, uncompromised integrity and positive results. If you're looking to buy or sell real estate, call Lisa Dinoto today! 909-921-2544

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