Here's another weekly installment of Do's and Don't's for
prospective borrowers embarking on, or already engaged in the home mortgage
process. In case it needs to be said, the "Don't's" are
strictly for comedy (though most are based on real world examples
of things that will kill or greatly delay the mortgage process).
The "Do's," on the other hand, are potentially valuable
nuggets of information that may greatly benefit your mortgage
experience. In fact, most of them can end up making a difference in the success
or failure of a loan, and at the very least, can help avoid costly
a local realtor for a comparative market analysis if you are considering
listing your home.
Don't: Contemplate refinancing for 2 months,
list your home, then
start the refinance without mentioning your home is
Do: Tell your lender far in
advance if your wife will be absent from closing and you need a Power of
Don't: Inform your loan officer you need a POA
for your wife, then leave town for two weeks to join her the day before your
closing is scheduled.
Do: Discuss whether you must
sell your existing home to qualify for the loan on your new purchase.
Don't: "Rent" your current home to your
unemployed brother-in-law and expect to use the projected rent as
Do: Examine in detail the
sellers' disclosures on homes you are considering buying.
Don't: Ask your potential new neighbors if
they mind regular backyard paintball tournaments.
Do: Ensure all your questions are
answered at closing and you are comfortable with your loan.
Don't: Cancel your refinance the third business day after
closing, then call your loan officer and tell him you want to rescind your
Do: Make sure eligible items
such as parking spots and boat docks are included in your purchase offer if
Don't: Expect the seller to "throw in" an
adjoining lot without including in the final sales contract.
Do: Bring every person
on the loan to the attorney or title company office for closing.
Don't: Tell the title company "it's OK, I
sign for my wife all the time" when they ask when she will
Do: Carefully read all
instructions from your loan officer on what documentation is required
for your loan.
Don't: Decide your lender "really doesn't
need" to see your divorce decree and tax return "because
Do: Ask your loan officer for a
written rate quote and discuss how long it is valid.
Don't: Be surprised if you call back three days later and loan
pricing has changed.
Do: Enjoy the amenities in your
new subdivision including pools and bike trails.
Don't: Race your ATV through the subdivision streets as a
means of meeting your new neighbors.
Above all else, DO remember that your loan originator
wants to close your loan as quickly and as efficiently as you and the good
ones fully appreciate that their borrowers' satisfaction plays a
huge role in their long term success.