Tips to Avoid Loan Approval Delays
DO's
- Check your email and voicemail for regular updates from our team, and respond quickly to our requests for information to avoid delays in the process.
- Keep your financial records close at hand in case updates are requested.
- Understand that things have changed. Underwriters require more documentation than in the past. Even if requests seem silly, intrusive or unnecessary, please remember that if they didn't need it, they wouldn't ask.
- Hold onto new paystubs as received. Be aware that underwriters typically verify your income and tax documents through your employer(s) and/or IRS tax transcripts.
- Let us know immediately if your income changes in any way.
- Let us know immediately if you have been laid off, as this may affect your loan approval.
- Continue saving incoming account statements. Keep all numbered pages of each statement, even if a page is blank
- Provide documentation for any non-payroll deposits.
- Let us know if you plan to receive gift funds for your closing. If you're receiving any gift money from relatives, they'll need to sign a gift letter and an account statement evidencing the source, which must be "seasoned" funds.
- If you're renting, continue paying your rent on time and save proof of payment.
- If you're selling your current residence, be prepared to show the Final Closing Disclosure (Final CD).
- If you'll be renting your home, be prepared to show sufficient equity, a lease, and receipt of the first month’s rent and security deposit.
- Keep your credit score high by continuing to make payments on time. Your credit is monitored throughout the process, and any negative change to your score could cause you to lose your approval.
- Notify us immediately if you receive a collection letter in the mail.
- Let us know if you will be out of town for your closing.
- Call us -- we are here to help you throughout the process!
Dont's
- Don't hesitate to ask questions. If you're uncertain about what you need or what you should do, our team is here to help you through the process, even long before you intend to buy.
- Don't increase your debt or make any major purchases on credit.
- Don't make any major purchases (furniture, car, boat, jewelry) during the process.
- Don't apply for any new credit, transfer card balances, or close any credit card accounts. Changes in credit can cause delays, alter the terms of your financing, or even prevent closing. If you must open a new account (or even borrow against retirement funds), please consult with our team first.
- Don't pay off any charge-offs or collections unless instructed by us before your closing.
- Don't take out any new loan or lease.
- Don't let anyone pull or check your credit until after you close on your mortgage. Credit inquiries are monitored and will require explanation.
- Don't co-sign for anyone.
- Don't change banks, or open/close any bank accounts.
- Don't make any unusual or undocumented bank deposits, or transfer unexplainable monies from accounts (payroll deposits are explainable). Primarily large but sometimes even small deposits must be sourced unless they are identified. Make copies of checks and deposit slips. Keep your deposits separate and small. Avoid depositing cash as it will not be considered available funds.
- Don't wait to liquidate funds from stock or retirement accounts. If you need to sell investments, do it now and document the transaction. Don't risk the market moving against you, leaving you short of funds to close.
- Don't change employers or your employment status during the process without notifying us. Probationary periods, career or even status changes (such as from a salaried to a commissioned position, leave of absence, or new bonus structure) can be subject to very strict rules. Our Underwriters will verbally verify your employment on the day of closing.
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