Do’s & Don’ts: Tips for a smooth loan approval

Here is a list of helpful tips to ensure an effortless loan process. These does and dont’s will help you avoid any delays with your loan approval. If you encounter a special situation, it is best to mention it to us right away so we can help you determine the best way to achieve your goals.

Do
  • Continue making your mortgage / rent payments
  • Stay current on all existing accounts
  • Keep working at your current employer
  • Keep that same insurance company
  • Continue living at your current residence
  • Continue to use your credit as normal
  • Call us if you have any questions
Don't
  • Make a major purchase car, boat, jewelry, etc.
  • Apply for new credit even if you seem preapproved
  • Transfer any balances from one account to the other
  • Pay off charge-offs without a discussion with us first
  • Pay off collections without a discussion with us first
  • Buy any furniture
  • Close any credit card accounts or consolidate your debt
  • Change bank accounts
  • Max out or overcharge on your credit cards
  • Take out a new loan
  • Start any home-improvement projects
  • Finance any elective medical procedure
  • Open a new cellular phone account
  • Join a new fitness club
  • Pay off any loans or credit cards without a discussion with us

Loan Application Checklist

In general, the documentation you will need includes:

  • Check for appraisal fee

Property Information (if you already have a contract on a house)

  • Purchase Agreement.
  • Copy of legal description and MLS sheet.
  • If you are selling your current home, copy of listing contract.
  • If you have sold your current home, copy of settlement statement (HUD-1).

Income & Assets

  • Pay stubs for the last 30 days.
  • Statements for each bank, mutual fund, and/or investment account for the last three months – with all pages.
  • Estimated value of personal property.

For the past two years:

  • Names and addresses of each employer.
  • W-2s

If you have made any large deposits to your accounts:

  • Explanation and source for deposit.
  • If large deposit was a gift:
    • Signed gift letter (we will supply).
    • Copy of gift check.
    • Copy of deposit receipt.

If you own more than 25% of a business:

  • Corporate or partnership tax returns.

If self-employed:

  • Tax returns for the last two years (with schedules).
  • Year-to-Date Profit and Loss Statement prepared by an accountant.

If you own rental property:

  • Tax returns for the last two years and current rental agreements.

If you are retired:

  • Pension Award Letter.
If you receive Social Security:
  • Social Security Award Letter.

If you are counting child support as income:

  • Copy of divorce settlement.
  • Copy of twelve months of cancelled child support checks.

Debts

  • Names, addresses, account numbers, balances and monthly payments on all current loans.
  • Explanation of credit report anomalies, including:
    • Late payments, credit inquiries in the last 90 days, charge-offs, collections, judgments and/or liens.
    • Bankruptcy filed within last seven years (bring a copy of your bankruptcy papers).

VA Loans

  • Copy of DD Form 214, Report of Separation.

Miscellaneous

  • Photo ID and proof of Social Security number.
  • Residence addresses for the past two years.
  • If applicable, a copy of your divorce decree.
  • If you are not a citizen, a copy of the front and back of your green card.