📖 Things You Should Know

The following tips may be helpful to know prior to entering the loan application process as there are many things that could have an impact on your loan application or approval.

• Do not open any new credit trade-lines until after your loan has been closed and funded.
  • Opening new accounts will lead to an increased amount of paperwork that is going to be needed during the process.
  • Lenders are able to use tracking systems to notify them when new credit accounts have been opened.
  • New accounts may impact your debt-ratio and qualification.
• Do not make credit inquiries until after your loan has been closed and funded.
  • Lenders are also notified when any new credit inquiries are made during the loan process.
• Understand the importance of your mortgage commitment date.
  • The mortgage commitment date you are given emphasizes when your financing needs must be approved by because after this date, your deposit may become non-refundable.
• Make sure to scan all documents necessary in an organized way.
  • Separate different documents when sending files and ensure that everything is in order with no missing pages.
• Select your insurance agent early.
  • Insurance figures are calculated into your total monthly payments for the property and will impact your debt ratio.
  • Your loan can't be fully approved without the final debt ratio and picking your insurange agent later can delay your closing.
  • It is recommended to have an insurance agent selected at least 2 weeks prior to closing.
  • If you change insurance agents during the process, your loan officer must be notified immediately.
• Pay attention to the details in your conditions and requests.
  • It is important to pay attention to your loan conditions as underwriters will not usually review your loan conditions until everything has been gathered and resubmitted together.
  • Pay close attention to the details of the requests from underwriting to ensure everything is being supplied.
• Liquidation of funds is needed for closing.
  • Liquidation of funds is needed to be tracked and approved before you are given final approval for your loan and could delay the process if this step is done later in the process.
  • Pay attention to conditions requiring you to liquidate funds from retirement, brokerage accounts, etc.