10 Things Not to Do During Your Loan Process

11/30/2020

Several things can affect a lender’s ability to close a loan transaction successfully and on time. From the time that a loan transaction begins, to the time escrow closes, a Borrower’s credit scores, account balances, debts, assets, employment and income are reviewed at varying intervals. If any of the 10 items below are going to occur during your loan transaction, contact your mortgage consultant before taking action so that every measure possible can be taken to ensure the loan transaction closes successfully and on time.

  1. Purchase a car or shop for a car
  2. Increase credit balances or apply for new credit (no credit checks should occur during the loan process!)
  3. Open a new bank account or make large deposits
  4. Transfer funds from one account to another
  5. Shift credit card debt from one Creditor to another
  6. Sell major assets
  7. Get married, divorced or go on maternity leave
  8. Go on vacation… making you unavailable to the Lender
  9. Borrow money from any source
  10. Change employers or quit your job

IMPORTANT: New Federal funding guidelines (part of the Loan Quality Initiative) require a second/final credit check immediately before closing escrow. If the new credit report reveals any inconsistencies versus the original credit report, the mortgage is subject to a complete re-underwrite, delays and a possible turndown.

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