The Dos and Don’ts of the Loan Process

Whether buying a new home, or refinancing your existing home, the loan process is vitally important. Beyond all the paperwork, there are many factors that lenders will consider that may affect your approval. Follow the guidance below:

  • DO complete your application thoroughly. The process will go faster if the lender does not need to contact you for missing information.
  • DO respond to all questions and requests promptly. Additional conditions may need to be cleared to help underwriters make a decision. Handle these requests quickly so that your loan can close on time.
  • DO disclose all other loans and credit on file to your loan officer. Be transparent with your loan officer so your application will not get held up.
  • DO make yourself available as your closing date approaches. Schedule plenty of time to review and sign documents and to pay closing costs and your down payment.
  • DON’T make any major purchases. Buying a car, appliances or furniture may alter your debt-to-income ratio and may negatively affect the appearance of your ability to make a monthly payments.
  • DON’T open any new lines of credit. This may also negatively impact your debt-to-income ratio and may harm your ability to qualify for a loan.
  • DON’T move money around in your accounts. This may appear as an attempt to hide debt or large balances.
  • DON’T use untraceable money. Much like moving money around in your accounts, using large amounts of cash or untraceable money may make it hard for underwriters to understand your spending habits and cash-flow.
  • DON’T make a career change until after your loan closes. It is important to demonstrate income stability.

To get the facts, and to learn more about the loan process, contact a licensed loan officer at CrossCountry Mortgage.  We’ll be happy to take some time with you to understand your situation and goals, and walk you through the loan process every step of the way.

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