When it comes to being approved for a mortgage loan, there are many ways to help you avoid missing out on this opportunity. Here are some tips to get you closer to purchasing your new home.

  • Keep all your records in good order. This includes your financial records and income paperwork. You’ll want to hold onto recent paystubs and tax documents. We will verify your income through your employer and verify tax returns if needed. Continue to save incoming bank statements that show your assets. Gifts will need a letter from the donor with account statement that shows the source. Making undocumented large deposits should be avoided. Large deposits from the sale of an auto, for example, must be documented. Make copies of bills of sale, DMV or other paperwork and checks/deposit slips. Try to keep deposits separate. Also, avoid depositing cash. Cash on hand is not an acceptable source of fund for down payment.
  • If renting, be sure to keep paying your rent on time. If you own your residence and are selling it, be prepared to show your closing disclosure/settlement statement. If you plan on renting out your home, you will have to show paperwork along with receipt of rent and security deposit.
  • As always, aim to keep your credit pristine. This means you should continually make all payments on time. Your credit report may be pulled more than once, and you wouldn’t want any negative change to your score to cause you to lose your approval and your home.
  • Avoid applying for new credit since it can cause delays and change the terms of your financing. Consult with your mortgage lending expert before opening any new accounts, or even borrowing against retirement funds.
  • Be aware that there may be strict rules regarding changes to your employment status, like going from a salary position to commission. Leave of absence or new bonus structures could also impact you.
  • If you need to sell investments, do it now and document the transaction. Do not take the risk that the market could move against you, leaving you short of funds to close.
  • Most importantly, if you’re uncertain about what you need to do, keep in contact with your mortgage lender and do not feel afraid to ask questions.

Don’t have a mortgage lending expert to ask advice? We encourage you to reach out to Pacific Funding Mortgage Division to speak with a loan officer today! Your loan is in good hands with our industry professionals that are all highly educated in industry trends.

For more information, please email us at Team@PFMD.com or go online to www.pfmd.com and apply directly using the “Apply Now” button to have a loan officer reach out to you in the near future.