What You Need to Know
We understand that the home buying process can be confusing. From calculating your mortgage to deciding on a loan program, you have a lot to keep track of.
At Residential Mortgage Network, our goal is to make things easy so you can enjoy the process of buying your new home. Therefore, we want you to keep these helpful tips in mind when embarking on the home buying process.
Things to Do
Communicate with your Loan Officer
Your Loan Officer is a personal advocate during the mortgage process. You will want to maintain an open, honest dialogue with them from application through closing. This helps alleviate surprises, allowing your lending professional to consider alternatives if need be.
Provide Supporting Documentation
The information given on your loan application must be supported by documentation and will be reviewed by a processor and an Underwriter. Any delay in giving documentation can lead to a delay in loan approval and/or closing.
The lending process can be confusing and may seem redundant at times. Your Loan Officer is coordinating a transaction between multiple professionals and entities, all of whom have their own requirements and guidelines. Don’t hesitate to ask questions.
Gift Funds For The Purchase Of Your Home
When accepting a gift to be used for your home purchase, you will be required to document the money. This involves proof of the source of funds, copies of the check, bank statements of both accounts, and a completed gift letter which your lender will provide. Ask before you attempt this. It is frustrating for you and your donor if you don’t understand the process first. And we’re here to help!
“It made it so much easier knowing I had someone on my side - very different from my experience at the BIG BANKS! Thank you!"Sharon, North Liberty
Things NOT To Do:
Shift Money Between Accounts
Account statements are collected to document available funds during your transaction. These funds are used to verify you have enough cash to cover closing. Any major withdrawal or deposit will require additional documentation and may extend the time needed to close your loan (‘major’ being more than $500, typically).
Make Random Undocumented Deposits
We must make sure that the money in your account is yours and if not, the source must be documented. When making non-payroll deposits into your account, you may need to provide a copy of the check and an explanation of the source of funds if it is a large deposit (over $500, typically).
Apply For New Credit
Applying for credit can adversely affect your score even if you do not accept the offer. Each application for new credit will cause an inquiry to your credit report which will then have to be explained. Please consult your Loan Officer before any major purchase.
Purchase Major Items
A large payment such as a car lease can have a significant impact on your debt to income ratios and prevent you from qualifying for a new loan. Wait to buy those big ticket items until weeks after you’ve closed on your home. This includes financing furniture/appliances! If you take out financing at a furniture store, you just opened a new credit card. WAIT until after closing!
Forget To Pay Your Bills
Moving can be a chaotic time. Don’t let the busy activity get in the way of paying your bills on time. One missed payment could have a negative impact on your credit and home loan.