Do's: Be Prompt!

Sign all documents promptly and return as soon as possible. Also, submit all requested documents such as; tax returns, income verification, bank statements, etc... By signing and submitting all the necessary documents, you can ensure you have done everything on your end to keep the ball rolling and to close within the rate lock period. We suggest signing and submitting necessary documents within 24-48 hours of request. This is critical to ensure a smooth home loan transaction.

Do's: Be Flexible With Appraiser.

Keep your schedule flexible for your home appraisal. The appraisal management company will send out an appraiser to assess the current market value of your home. By having a flexible schedule you can get a sooner than later appointment date for your appraisal. It is best to take the soonest appointment and avoid pushing the appraisal back or putting it off all together.

Do's: Continue To Make Your Mortgage Payments.

Your timely payments ensure good credit standing and being up to date with your mortgage is very important. Lenders run credit a second time, usually towards the end of closing. They want to make sure your credit risk status is the same as when you were approved. Don't jeopardize the loan by purposely missing your mortgage payment!

Don't: Finance A New Car Or Anything Else For That Matter!

Getting a new auto loan, opening a new line of credit or just plain getting new debt is one of the worst things you can do while your pending loan is in process. Getting new debts can dramatically change your debt to income ratios, which is a very important factor when determining your borrowing capability. If you do open new credit items it creates more paperwork for all involved. At this point, the new debt is on your credit report and you may create challenges getting approved for a mortgage. In order to get an auto loan the car dealership would need to run credit. Running your credit report is another thing you should not do while your loan is processing. Just sit tight until your loan has funded.

Don't: Make Large Deposits.

Large deposits can raise a red flag for underwriters and can potentially kill the deal. Money deposited in your bank account must have a verified source. Example, your paycheck that you deposit will have a paycheck stub and there is a verifiable source, your job. However, if you deposit $20,000 one day, the lender will raise eyebrows. Let's assume you had a car already paid in full and you decided to sell it privately via Craigslist. You must have a receipt in order to prove to the lender that every dollar you deposited is accounted for. The best thing to do is not make any large deposits.

Don't: Leave Town.

Sounds like an odd request right? Well, it's not! If you are out of town and additional documents need to be signed or submitted, you won't be able to make it happen. You'll have plenty of time to take off when your loan is funded and complete, so stay put for the duration of your loan process, if at all possible.

Don't: Quit Your Job or Get Fired!

Losing a source of income is a sure way to get that initial approval changed to a firm denial!

As always, we are happy to help. Call LifeSource Mortgage @ (949) 492-2252, we are your Orange County mortgage specialist.