Do’s and Don’t’s For a Smooth Mortgage Process

Here’s another installment of Do’s and Don’t’s for prospective borrowers embarking on, or already engaged in the home mortgage process.  In case it needs to be said, the Don’t’sare strictly for comedy (though most are based on real world examples of things that will kill or greatly delay the mortgage process).

The “Do’s,” on the other hand, are potentially valuable nuggets of information that may greatly benefit your mortgage experience.  In fact, most of them can end up making a difference in the success or failure of a loan, and at the very least, can help avoid costly delays.

DO: Call well in advance so gas and electric service are on when you move into your new home.
DO NOT: “Borrow” your new neighbor’s electricity via a hidden extension cord if electric company is late.
DO: Have seller pay for any mold remediation and ensure it’s completed before closing.
DO NOT: Ask appraiser if he can “forget” to take photos of the copious mold throughout the house you are selling
DO: Answer all your loan officer’s questions completely and accurately to help him expedite your loan
DO NOT: Tell your loan officer you’re single and hope lender and title company don’t discover you’re really married
DO: Call the cable company to transfer your service to your new home
DO NOT: Attempt to put the new cable account in your dog’s name due to your pesky prior unpaid cable bills
DO: Realize if your new home adjoins a golf course, golf balls may occasionally land in your yard.
DO NOT: Send your children out to collect the balls, then sell them back to irate golfers in lieu of allowance money
DO: Get several bids on any needed remodeling for your home, and a CMA from a trusted agent if you’re considering selling
DO NOT: Expect HGTV’s “Love It Or List It” stars David and Hillary to respond an email and show up to renovate your home
DO: Agree on exactly what your “must haves” are for your new home
DO NOT: Tell your agent you “have to have” three bedrooms and a big yard, then ask to see two bedroom condos
DO: Realize any foundation leaks in home you’re selling must be disclosed to the buyer
DO NOT: Put a throw rug and some boxes over the large cracks in your basement in hopes the appraiser doesn’t notice them
DO: Obtain HO-6 insurance coverage for the interior and contents of your new condo
DO NOT: Cancel your policy the day after closing to save $25 monthly and defray HBO and Showtime costs
DO: Tell your lender if you have a service related disability when applying for a VA loan
DO NOT: Call your lender several months after closing, tell him you “forgot to mention” your disability, and want your funding fee returned

Above all else, DO remember that your loan originator wants to close your loan as quickly and as efficiently as you and the good ones fully appreciate that their borrowers’ satisfaction plays a huge role in their long term success.

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