What not to do once you qualify for a home loan

As many of you know, or may not know, it is much harder today to qualify for a loan today than in the past.  The great news is -- San Diego County Home Prices are much lower compared to years past.

Below are some fantastic tips to help you throughout the escrow period.  Please keep in mind your credit score will be a huge factor as well.

1.       Do not move any money around until your loan closes.  If a bank verification of deposit shows a recent increase in your accounts an explanation of the increase will be required. Be able to document the source of your deposits greater than $100 with receipts, copies of checks, bank statements etc. 

2.       If you obtain gift funds for your purchase, DO NOT deposit the funds into your account; have the donor wire funds directly to escrow prior to closing. There is much scrutinty with the verification of funds for both the donor and recipient.  I recommend specific and detailed communication with your loan officer as he/she will provide you with the necessary steps to comply with the banks verification of funds requirements

3.       Don’t make any large purchases until after your loan closes.  If a re-verification of credit shows you have recently bought a car, or your charge account balances have increased, it could jeopardize your loan approval.

4.       If your loan approval requires you to pay off bills continue to make your routine payments until your loan closes.   Your loan officer will then request that you bring the monthly statements to the closing and let escrow pay off the accounts through the closing.  If you pay the accounts yourself, escrow may not be able to verify zero balances for several days or weeks, which could delay the closing of your loan.

5.       Do not quit your job. 

6.       No Cash Advances on your credit card(s).

7.       Do not open or close any accounts - this can affect your credit score.

8.     Continue to make all of your payments as On Time, especially your mortgage.  Any extra payments made during a refinance or purchase will be properly refunded at closing.