What Not To Do on Mortgage

Subscribe to articles about Borrower's Tips

There are things that you could not do when you are taking out a mortgage. These things will invariably complicate the process and delay you loan. Certain things can also cause you to not qualify for the loan anymore, so here are a few things you should avoid:

1. Do not go on vacation, out of town, or out of contact: In the case when the lender needs to get in contact with you, you need to be there. Even if you have provided all of your documentation to a satisfying degree, you still need to be there for other things that require face to face contact. The appraiser need to be able to go over to you property and appraise it and if you are not there then they can not. If the lender has any questions, they need to be able to get a hold of you or your loan will come to a grinding halt until you return.

2. Do not lie on the application: When filling out the application, fill it out truthfully to the best of your knowledge and inform the loan officer of anything that may become a factor in your loan. The lender is obligated to verify all information on the application so they will find out. If there is a discrepancy, then it will need to be explained.

3. Do not use your credit: This does not mean that you can not use your credit card anymore; this means that you should not do anything that would require a credit check. Every time you apply for something that requires a credit check, it appears on your credit report and the lender needs to know what these inquiries are and what they are for. They need to do this because all liabilities need to be calculated in order to create an accurate picture of your financial situation. If you use your credit during the loan process then the lender will need to find out what it is for and if it will have any bearing on your loan. In certain situations, it can even disqualify you from your loan. For this reason, we request that you do not use your credit for the month (give or take) requires to complete your loan.

4. Do not have any suspicious activity in your accounts: When the lender see your bank accounts, they need to account for any large influxes of cash and find out where it came from. If you are planning to move around large sums of money, then be prepared to source the funds for the lender. This is a requirement of the investor, and if there is no way to source the funds, then we can not use the account as part of your assets.

California Mortgage Rates


Related Articles

May 21, 2014

Mortgage Back Security

Mortgage rates held almost perfectly steady today despite the potentially important release of last month's meeting minutes from the FOMC...

May 21, 2014

Ongoing Lock or Float Considerations

The Fed has stayed the course on their 10bln per meeting reduction in bond buying though markets have handled it...

May 23, 2014

Lower Mortgage Rate

Fed Comments Help Mortgage Rates Investors viewed the news from the Fed this week as favorable for mortgage rates A...

More Mortgage Articles