Kieber: Mortgage dos and don’ts (column)
I have been in finance now for just over 40 years. Though I think I have heard every excuse and seen every mistake a client can make, I still to this day see new ways to screw up getting approved for a mortgage.
So I decided to make a list of things you should and should not do when applying for a home mortgage. Here they are:
1. Do not quit your job or get fired during the mortgage process. If you cease receiving a paycheck your chances of being approved for a new mortgage are basically nil.
2. Do not retire during the mortgage process. Work a few more weeks or months. You may have more than enough in your retirement accounts to pay the new mortgage but you have just added to delays and a lot more paperwork for yourself and the mortgage banker.
3. Do not go out and purchase a new car, truck, airplane, yacht or anything else that will reduce your savings and increase your monthly payments. Be financially boring during the mortgage process.
4. Do not delay getting your mortgage professional the documents being requested. You may think the documents are not important but we would not be asking for a copy if they were not important. The documents requested are very important.
5. Do not move funds from bank account to bank account. Doing so is confusing to the underwriter and slows the process and will increase the time it takes to review and approve a mortgage.
Now to the do’s in being approved for a mortgage.
1. Act quickly in supplying all the documents requested.
2. Plan on supplying your mortgage banker new pay stubs and bank statements as they arrive. We work with current information to know your financial status.
3. Be proactive in locating homeowners insurance. Shop around and when you find the company you plan to use let your mortgage banker know their contact information.
4. Finally, know that your mortgage professional works for you. They want that new mortgage to be approved almost as much as you do. Work as a team and things do fall into place.
Robert (Bob) Kieber is a longtime resident of Summit County and has been closing mortgages for over 20 years in Colorado and nationwide. If you have a questions Bob can be contacted at 970-485-1312 or email him at rkieber@boeMortgage.com. NMLS #289610
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