Avoid Loan Delays During The Mortgage Process

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

 

No matter how many times a Loan Originator tells Borrowers what to do and what not to do during the loan process, Borrowers do not seem to remember.  So in an effort to help my Borrowers remember and Avoid Loan Delays During The Mortgage Process, we have created a flyer to give Borrowers when they apply for a loan. The above flyer contains a number of things the Borrower is NOT to do during the mortgage process, which will result in delaying their mortgage from being approved.

I have written blogs in the past about mortgage delays Borrowers cause during the Mortgage Process, and Absolute Do Not's When Purchasing A House,  such as:

  • Employment - DO NOT quit or change jobs, even if it is for a better job.  A change in jobs will mean having to wait to produce paystub(s) covering 30 days of Year-To-Date income from the new employer.
  • Credit - DO NOT
    • Purchasing a new car
    • Open new credit cards
    • Increase balances on credit cards
    • Late payments on credit cards, loans, rent, utilities, etc
  • Assets - DO NOT:
    • Make deposits other than payroll deposits unless they can be documented
    • Make withdrawals which cannot be documented
    • Make Multiple transfers between accounts, especially if the transfer is from an account which the funds were not being used to purchase the property.
    • Open new accounts unless the funds can be documented
  • Down Payment & Closing Costs - DO NOT:
    • Accept cash gifts.  Cash cannot be documented, therefore it cannot be used as funds for down payment or closing costs.
    • Allow someone who is not on the mortgage to write the check(s) for the earnest money deposit.  Doing so will make the money a gift and require additional documentation.
    • Money orders or bank checks purchased with cash cannot be sourced, therefore, they cannot be used as funds for down payment or closing costs.

As obvious as some of these DO NOT's are, they happen fairly often.  That is why they cannot be said enough during the mortgage process.  When a Borrower/Buyer is in the process of purchasing a house, they need to hear these DO NOT's almost on a daily bases.  I cannot be with a Borrower daily to remind them NOT to do these thing, and since it is very likely they will not remember them once they leave my office, the flyer hopefully will serve as a daily reminder.

Of course even though I cannot be with my Borrowers daily to make sure they DO NOT do any of the above things to Avoid Loan Delays During The Mortgage Process I am always available by phone or e-mail if they have any doubt about whether they CAN or CAN NOT do something.  But Borrowers do not always think to call or e-mail me.  So I instruct my Borrowers to put the flyer in a place they will see it everyday.  By placing the flyer in a visible place it will serve as a continuous reminder.  Hopefully this will help my Borrowers to Avoid Loan Delays During The Mortgage Process or worst, have their mortgage denied. 

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 01/02/2018 11:45 PM
Topic:
Mortgage / Finance
Location:
Connecticut
Groups:
Mortgages
1st Time Buyers
Real Estate Rookie
Be The Best In Your Field
Old Farts Club
Tags:
loan process

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Rainmaker
2,670,749
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Great advice George, no one likes delays when it comes to closing a transaction and especially Mortgage Delays, Endre

Dec 23, 2017 09:31 PM #1
Rainmaker
2,600,106
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Good morning George. Some things cannot be repeated often enough. Thanks for the reminders. Merry Christmas!

Dec 24, 2017 04:01 AM #2
Rainmaker
2,732,995
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

I defiinetly feel a bookmark coming on ! 

Dec 24, 2017 04:42 AM #3
Rainmaker
4,197,490
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for the excellent tips for those looking for a loan, George.  I need to show this to a few folks.

Dec 24, 2017 05:52 AM #4
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Love this flyer, George. I use a two-page document called "Don't Get Yourself Into A Pickle" which covers what to do and not to do that includes a picture of a pickle jar.

Dec 24, 2017 07:22 AM #5
Ambassador
1,902,602
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

George, these dos and don'ts are so important! It may sound redundant to tell people about them but better be safe than sorry! 

Dec 24, 2017 08:26 AM #6
Rainmaker
2,133,436
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I hope you and your family have a very special Christmas, George.  

Dec 24, 2017 10:10 AM #7
Ambassador
3,627,665
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I give each buyer "the talk" when we go to contract and my lenders do the same. I have not had a buyer mess up their loan in many years, thank goodness.

Dec 24, 2017 05:29 PM #8
Rainmaker
2,435,948
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Loan delays are never a fun thing George Souto 

Wishing you and yours a Merry Christmas Eve!

Dec 24, 2017 05:44 PM #9
Rainer
111,388
David A. Weaver
Peoples Bank & Trust Co. - Scottsdale, AZ
24 years helping folks finance their dreams.

Good reminders for us all, thanks George.  Have a great 2018.

Dec 26, 2017 10:55 AM #10
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