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What NOT to Do During The Loan Process

April 1, 2013
From Loan Officer Daphne Tapp

From Loan Officer Daphne Tapp

Home buyers can find a wealth of information on what they should do before closing on a mortgage loan… save a down payment, gather documentation and paperwork, and find a loan officer that can guide them through the process. But, it might be even more important for potential borrowers to know the things they should not do during the loan process to ensure it’s approved and closes on time.

Small percentage of mortgages are denied.
Although less than 15% of borrowers buying an owner occupied home with a conventional mortgage were denied in 2011, according to the Federal Reserve’s most recent analysis*, the two main reasons cited by lenders were collateral issues and debt-to-income levels, or in simpler terms, too much debt!

Borrower choices during the approval process can jeopardize their loan
Some borrowers assume if they are prequalified or their application is already in underwriting, they don’t have to worry about added purchases, job changes or credit card balances, but it’s just the opposite. Certain actions can actually put their approval in jeopardy.

We’ve created a new infographic, an easy-to-read engaging visual that details what NOT to do when a buyer is in the mortgage process. It’s an easy checklist that you can share with your borrowers – and keep handy yourself so you can advise them as they begin the home loan process.

As always, your loan officer is happy to provide you with expertise and support as you reach out to your clients. Please let us know how we can help!

4-1-13 Things Not To Do Before Closing

Source: http://www.federalreserve.gov/pubs/bulletin/2012/PDF/2011_HMDA.pdf

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