another weekly 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’s”
are 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
Above all else, 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
DO: Ask you agent about any covenants
or subdivision rules you will be expected to follow at your
DON’T: Inquire whether you can operate a combination
pawn shop, tattoo parlor, and intimate café “as long as
the neighbors don’t find out.”
DO: Inquire with your title
company on any
deed restrictions (such as mineral rights) applicable to your
strip mining your back yard in hopes of striking gold after
watching several mining shows on The Discovery Channel.
DO: Provide all pages of all
records requested without
blacking anything out.
Tell your loan officer you
“know for a fact” you can’t
be asked to provide tax returns because they weren’t
required when you closed your last loan in 2007.
DO: Discuss your home’s
features, improvements, and potential value with your lender.
Decide your home must
be worth $250,000 now solely because
you paid $200,000 for it in 2009.
DO: Tell your lender if you
have any second
mortgages or home equity lines before you start your loan.
Take a $20,000
advance on your current home equity line three
days before closing.
DO: Feel free to ask your
your appraiser will be assigned and what to expect
during the appraisal process.
Inquire with your loan officer
for how recommended amount for “appraiser
DO: Tell your lender if your
taxes or homeowners’ insurance premiums
Advise your lender you want to
shop around for homeowners’ insurance and will decide
on the new company the day before closing.
DO: Discuss available
rate and term options with your loan officer before
he starts your loan.
Decide to switch
from a 30 year term to a 15, then to a 20 during the loan
DO: Decide if you want cash
back and, if so, how much, during the initial application
Ask your loan officer 24 hours
before closing if you can now
get $10,000 cash back on a no cash out refinance.
for clarification if the room count or square
footage shown on your appraisal appear incorrect.
Call the appraiser
every 4 hours to ask when the appraisal will be completed.