Mortgage Do’s and Dont’s

Mortgage Do’s and Dont’s

Are you working with a mortgage broker to secure a home loan? In that case, you may want to pay attention to these (surprising) Do’s and Don’ts when it comes to the mortgage process.

Do inform your broker if anything has changed since you last spoke and we mean anything: change of job, address, salary, home life, etc because it could influence the final decision.

Don’t make any big purchases or significant changes financially. You don’t want your income to debt ratio to fluctuate at this time.

Do hang on to your paperwork. There isn’t a more vital time to organize you financial records than during the mortgage process. No one wants to be declined because you can’t provide recent paystubs or document large financial transactions.

Don’t change anything in regards to credit. It may seem like common sense, but applying for a credit line or consulting your debt could negatively affect the outcome.

Image courtesy of renjith krishnan /

Image courtesy of renjith krishnan /

Do get homeowner’s insurance that will cover the value of your mortgage or the replacement value of your home.

Don’t pay collections. Sound crazy? It will actually cause your credit score to fluctuate and you don’t want that right now.

Do get a reliable home inspector to take a peak at your purchase property.

Don’t change jobs. Lenders will typically look for a two year work history at the very minimum.

Do protect your credit score. Rather than doing anything crazy like paying off your debt, simply keep an eye on your score and stay on top of any changes that ma affect your credit.

Don’t cosign for anyone right now. Lenders will view this as additional debt and could affect your mortgage chances.

Do call your River City Financial broker if you have any questions or concerns. Their job is to help you understand the mortgage process.

Don’t make any changes to your overall asset picture that your broker hasn’t approved, such as closing or opening accounts, making unusual or very large deposits or making changes to other investments.

We hope this will help make the mortgage process seem that much easier. Questions or comments? Feel free to connect with us below!

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