A couple in the homebuying process sit on a couch and listen to their mortgage lender explain the dos and don'ts during the mortgage process When applying for a mortgage or refinance, a borrower can do several things to make the mortgage process more successful. However, there are also actions that should be avoided during the loan process as they can slow down or inhibit a borrower’s ability to get a home loan. 

    Once a loan application and documents have been submitted, you may think the work is over, but it’s not. You are responsible for avoiding actions that may impact your mortgage loan. 

    What’s After The Application

    It is essential for you to know what to do and what to avoid before and after you complete an application. Your next step is to do everything you can to ensure the process goes as seamlessly as possible. 

    What To Do

    • Stay current on your rent or home loan payments
    • Use your credit ordinarily and stay current on all existing accounts
    • Keep your current job
    • Check for errors on your credit
    • Assess and identify your budget and what monthly payment you can commit to

    What To Avoid

    • Start any projects to improve your home while refinancing a current mortgage
    • Take a long vacation while a loan is still being processed
    • Apply for/open/pay off/close/reach your limit on any credit card accounts
    • Make a large purchase (i.e., car, boat, jewelry, furniture, new gym or cell phone account)
    • Consolidate debt onto a singular credit card
    • Change banks or transfer balances from one account to another
    • Borrow money from friends or family members
    • Make any large deposits or transfer sums into an account without a documentable paper trail (no mattress money)

    Some of these actions can seem obvious or things you wouldn’t normally do, but caution is still essential. To improve their chances of qualifying, often, people try to pay things off or close down accounts. While these are generally good things to do, they can backfire and make situations worse in the eyes of a lender. Make sure to speak with an experienced loan professional before making any significant adjustments to your financial situation. 

    The Right Mortgage Company

    The mortgage application process is not always an easy one. At JVM, our Client Advisors and Mortgage Analysts are here to help explain each part of the mortgage process in easy-to-understand terms. Many people are unsure if they are working with a company that will make everything clear to them and often find themselves struggling with communication from their lender throughout the home buying process.

    At JVM, we pride ourselves on our 7-day availability and promise 60 minute response times during business hours.

    Reach out to us to get started now!

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