by Liberty Bank
Buying a home is a major milestone, and you may not know where to start. Should you switch to a better paying job right before buying a home? The answer may surprise you. Read on for the DOs and DON'Ts of applying for a mortgage.
DON'Ts
- DON’T quit your job or change employers before or while applying for a mortgage. If you do, talk to your loan officer about the documentation you will need.
- DON’T close or open any bank accounts or transfer funds between accounts without talking with your loan officer.
- DON’T make any large purchases while your loan is in process.
- DON’T open or close charge cards as it may impact your credit or qualification for the loan.
- DON’T take a cash advance on a credit card for the down payment on the purchase.
- DON’T deposit cash into deposit accounts without talking to your loan officer.
DOs
- DO make copies of income and assets documents. Your loan officer will be asking for: a month of pay stubs, two years’ W-2s and/or tax returns, bank statements and more.
- DO document the source of your down-payment. Keep a copy of the check and the bank statement showing the funds have cleared the account.
- DO document the source of gift funds. Ask your loan officer if you will need to complete a gift letter and what documentation you will need for verification.
- DO notify your loan officer of any changes to employment status.
- DO research quotes for homeowner’s insurance so that you are ready for the closing.
- DO be aware the bank will pull your credit prior to closing to ensure you have not taken out additional debt.
Do you have questions about the home buying process? Contact a loan officer today.
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