Just moving cash from one bank to another can create a major glitch in the mortgage application process. Below are mortgage sabotage some other common areas that require special attention during the processing of your mortgage loan:
Try not to move cash around.
During the loan application process, the Rider Team will have to verify all the income and assets listed as part of your application. Moving these assets around can create a paper trail nightmare. The best advice is to leave everything where it is and discuss any changes you wish to make with the Rider Team.
Document large deposits.
The Rider Team will have to verify all sources of funds for the transaction. We’ll be looking at any large deposits into your asset accounts (checking, savings, money market, etc.). You should be prepared to document all sources — perhaps a copy of a paycheck, bonus check, money from the sale of an asset, etc.
If you’re selling a large asset, such as a car, antique, baseball card collection to come up with the cash for closing, please document the sale. Keep everything, including the check the buyer gives you, car title or a bill of sale. Sometimes you’ll even need to get a certified appraisal of the item. Talk to the Rider Team if you have questions.
Document gifts appropriately.
Large cash gifts from relatives are very common when purchasing a home. If you are anticipating receiving a cash gift from a relative toward the purchase of your home, please notify the Rider Team.
Become a paper hound. Keep all of your bank statements, pay stubs, tax returns, along with any W-2s, 1099s or K-1s and any other financial papers from the past two years in a handy place. If you sold a home in the past two years, have your (HUD-1) Settlement Sheet handy. Try to create a file where you can consolidate all of your financial paperwork for easy access. When in doubt, just pop it in the folder. You never know when you may have to produce an item that you did not expect.
Avoid new lines of credit.
It is a good idea to avoid any new sources of credit as it will materially change your credit report. Additionally, if you’re planning to pay off major credit debt before closing, hold off until you’ve spoken to the Rider Team. We may be able to pay off those debts at closing without affecting the application process.
Review your credit report.
The best way to get a jump start on your mortgage application process is to know what your creditors are saying about you. Request a free credit review with the Rider Team.
Tell us about a new job.
Making a career move? Make sure the Rider Team knows about it as soon as possible so that we can ensure all appropriate changes are made to the loan application.
In summary, speak with the Rider Team if you anticipate making any significant changes to your financial picture prior to closing on your loan. Things you think aren’t a big deal could make a big difference in settling smoothly. We will do everything possible to ensure the process is easy and convenient, so the best advice is to keep the Rider Team informed about anything that could impact your application.