1. Do not request new credit during the mortgage process. Buyers often establish new credit during the loan process! Your credit will be pulled several times, including the day of closing. Any new credit inquiries and/or debts can cause your mortgage to be denied. Please hold all new credit inquiries until after the home has closed and funded!

2.  Don’t change jobs during the mortgage process! Your employment is checked several times during the process including the day of closing and any change in employment during that process can cause your mortgage to be denied.

3.  File and pay your taxes! A tax transcript for the past 2-3 years may be pulled with the IRS. We will see everything reported to the IRS in the past 3 years, so make sure you file and pay your taxes or set up a repayment plan and disclose that monthly debt.

4. Keep bank deposits at a minimum! Every deposit made in your bank account has to be identified as to where it came from. Please keep deposits to a minimum leading up to and during the mortgage process. We will need a 2 month history of your bank account with proof of all deposits.

5.  Child Support and Alimony should be included as monthly debts on the application.

6. The VA requires Child Care to be included as a monthly debt, so if you have any childcare expenses and are applying for a VA mortgage please include that monthly expense.

7. If a down payment is required, you must have had the funds in an account for the past 2 bank statement cycles or it must have been received as a gift that does not need to be paid back. Borrowing funds is allowed on some loan types as long as you qualify with the debt of the borrowed funds.

8. A gift is allowed, but requires some paperwork from the individual giving the gift. We have to prove the money came from the individual, that they had the money to gift and they must provide a letter stating the money is a gift and it does not have to be paid back. 

Please call us today to discuss options around any of the above dilemmas you may find yourself in!