Do’s and Don't During the Mortgage Process

With mortgage guidelines tightening over the past few years, some of the actions that might cause “hiccups” in your loan transaction may surprise you. Below are a few basic rules to follow when preparing to purchase or refinance.

Do’s and Don't During the Mortgage Process

Do (Purchase and Refinance):

  • Keep pay stubs and bank statements handy. In case the underwriter requires updated documents prior to closing, having these on hand can ensure a timely closing.
  • Remember that we have your best interest in mind. Sometimes the paperwork can seem excessive and even ridiculous, but keep in mind that your lender wants your loan to close and would never create more work for you or for them by asking for more than is needed.

Do (Refinance):

  • Continue to make your mortgage payments. If you are interested in skipping a payment, it’s important you contact your LO to discuss the details. Since your current mortgage pay-off will include unpaid interest, it’s essential to communicate your payment intentions so your lender can maintain accurate payoff figures throughout the transaction.
  • Prepare your home for the appraisal. Although minor “messes” don’t really have an impact on your property value, first impressions are important. A presentable home free of clutter, minor maintenance needs, etc. is likely to appear more favourably to the appraiser.


  • Open any new credit. Most of us know this one, but occasionally our borrowers have extenuating circumstances that cause them to disregard the “rule” and open new accounts (e.g. the end of a car lease, a 20% discount on a store card, a broken clothes dryer). Most lenders have a credit monitoring service that alerts them to these new credit inquiries. At the very least this will result in documentation and a couple of days of delays at closing. Worst case, though it is rare, that higher lease payment, $50 Home Depot payment, etc. could result in a rate increase or even loan denial.
  • Don’t change jobs. Whether you’re just thinking about changing positions at your current employer or quitting for another position, don’t make a move without discussing it with your mortgage professional. Any significant job changes, especially to another field, another pay structure or an independent contractor/self employed position could result in a loan denial.
  • Make large, irregular deposits. Due to recent guideline changes, most large deposits that are outside of regular payroll must be documented in detail. Avoiding large deposits that can’t be easily documented will save a lot of difficulty – even transfers from a savings account can cause delays. Additionally, it’s very important to discuss any gifts funds or loan disbursement you’re anticipating with your loan officer before accepting them.

Give us a call for more details on the loan process or to get started on your loan application today!

Instant Mortgage Rate Help

Loan Amount: How much do you want to borrow? Example: 150,000 (You can borrow up to 100% of the purchase price of your home. You will find better interest rates at 95%, 90%, and 80% progressively.)

Property Value: This is the purchase price of your property or your best estimate of the appraised value of the property. Example: 175,000.

Loan Type: Selecting Refinance WITH CASH OUT may increase your rate. If you want some extra cash to pay the closing costs on your new loan, this would NOT be considered receiving extra cash.

Escrow/Impounds: Allows you to pay 1/12 of your annual property taxes and homeowners insurance with your mortgage payment each month. Escrowing your taxes and insurance will lower your points by .25%

Property State: Specify the State where the property is located

Property County: Specify the County where the property is located

Todays Rates: These rates are based on the following criteria..

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