Dos And Don’ts During The Loan Process

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By: Ben Eachus Special to the Boca and Delray newspapers

Do: Ask questions

If you think there is something about your file that the lender needs to know, for instance, a gap of employment over 45 days in the last two years, you haven’t filed the last six years’ tax returns, you are about to get married or you are selling a home and it may not close on time (or at all), make sure you contact your lender.

Do: Keep your original paycheck stubs and bank statements

You are required to update any documents that are over 30 days old prior to closing of your mortgage loan (even if your loan is approved).

Do: Provide documentation for the sale of your current home

Your lender needs the sales contract and closing statement HUD-1 Settlement if you are selling your current home.

Do: Let your lender know if you will receive a gift of funds or need a power of attorney

If you are receiving a gift for your down-payment or closing costs, your lender needs to know ASAP. If you are married, both you and your spouse are required to be at the closing. All POA’s must be “Real Estate Specific.” They also must be reviewed and accepted by he lender’s attorneys prior to closing.

Do: Contact your lender about employment changes

If you change employment, get a raise/promotion, change of pay, such as salary to commission or have a leave-of-absence, your lender needs to know ASAP.

Do: Notify your lender if marital status changes

Don’t: Change jobs

This change could STOP your mortgage loan. Your lender will re-verify your current employment on the same day of your closing.

Don’t: Buy a car or make any major purchases

If you need to make a large purchase, like furniture, appliances, or anything expensive, please contact your lender to make sure it doesn’t have a negative impact on your qualifications. You will have to sign a letter at closing that states you have not opened any new credit since your loan application.

Don’t: Deposit any funny money

Cash-at-Home cannot be used! Any deposits over $200 in your checking or savings account will need to be verified if it doesn’t come from your paycheck. Guidelines require documentation of these funds (bonus checks, copy of tax refund, gift letter with copy of check). No cash advances on your credit cards!

Don’t: Close any credit cards or open new credit

If you transfer money from one account to another, your lender needs to see this documentation. Closing a credit card can lower your credit score. Your credit report may be re-checked the day of closing.

Don’t: Change your closing date

If you need to change or move your closing date on the home you are buying/selling, your lender needs to know immediately.

About Ben Eachus

Ben Eachus, branch manager for Highlands Residential Mortgage, has been assisting his clients with mortgage financing and leadership since 1997. He worked for two of the largest banks in the U.S. where he built platforms and teams from inception. He created and maintained cross sell initiatives with the bank branches excelling in Private Banking and Wealth Management lines. He is past president and a current director for the Mortgage Bankers Association of the Palm Beaches. Mr. Eachus received his undergraduate degree from The University of Akron, Ohio. He was a track and field athlete participating in the long jump and 100 meter. Originally from Ohio, Mr. Eachus has lived in South Florida since 1998 with his three children where he continues to focus and specialize in the mortgage financing and planning for his clients.