Preparing for Your Mortgage Application

A Few Smart Steps Can Help Keep Your Loan on Track

Once you're preparing to apply for a mortgage—or you've already started the process—changes to your finances can affect your qualification.

Until your loan closes, it's a good idea to keep your financial situation as consistent as possible and check with your loan professional before making significant changes.

Before You Apply

A little preparation can make the process easier.

• Gather recent pay stubs and income documentation

• Locate W-2s, tax returns, or business documents that may be needed

• Organize recent bank and asset statements

• Review your credit report for unexpected accounts or errors

• Know approximately how much you have available for your down payment and closing costs

• Gather information about other properties you own

• Be prepared to explain unusual deposits, employment changes, or credit events when requested

During the Mortgage Process — Check With Me First

Before making a significant financial change, contact me first. Something that seems harmless could change your qualifying income, monthly obligations, available assets, or credit profile.

Avoid opening new credit accounts.
That includes credit cards, furniture financing, store accounts, personal loans, and “buy now, pay later” financing.

Don't finance a car or other major purchase.
A new monthly payment could change your debt-to-income ratio and affect qualification.

Don't co-sign for someone else's loan.
Even if someone else intends to make the payments, the obligation may need to be considered when qualifying you.

Don't close credit accounts without discussing it first.
Closing accounts can affect your credit profile.

Don't change jobs or how you're paid without telling me.
A change in employer, hours, salary, commission structure, self-employment status, or other compensation can affect how your qualifying income is calculated.

Don't move large amounts of money between accounts unnecessarily.
Transfers may need to be documented and can create additional paperwork.

Don't make large cash deposits.
Funds used in a mortgage transaction may need to have an acceptable, documented source.

Before You Do Any of These — Call Me First

During the mortgage process, even a small financial change can sometimes affect your loan approval.

Please contact me before you:

• Buy or lease a vehicle

• Open a new credit card

• Finance furniture or appliances

• Use a “Buy Now, Pay Later” account

• Co-sign a loan for someone

• Change jobs or employers

• Reduce your work hours

• Change from W-2 to 1099 or self-employed status

• Make a large cash deposit

• Transfer large amounts between accounts

• Withdraw significant funds from your accounts

• Pay off or close credit accounts

• Apply for another loan

• Make a major purchase before closing

Keep Your Documents Current

Mortgage documents can expire during the loan process. You may be asked for updated:

• Pay stubs

• Bank statements

• Asset statements

• Employment verification

• Insurance information

• Other documents needed for final underwriting

Receiving a request for an updated document does not necessarily mean something is wrong. It is often simply part of keeping the loan file current through closing.

One Simple Rule

When in doubt, ask before you act.

A quick conversation before making a financial change can help prevent an unexpected problem with your mortgage approval.

CONTACT GIDGET

Your loan isn't finished until it closes. Keep your credit, employment, income, and assets as consistent as possible until closing.