Do's and don'ts of home loans

Laura Johnson.

Want to make your mortgage process go as smoothly as possible? By following these guidelines, you can be sure that your loan processing and closing are completed as quickly as possible.

Don't apply or take out new credit cards, auto or personal loans or have new credit inquires in your credit bureau file during the course of your loan process and closing.

Don't make any large, unverifiable and un­documented deposit or withdrawal to your checking or savings accounts.

Don't quit or change employment.

Don't write any insufficient funds check.

Don't take any cash advances on credit cards to pay for your escrow deposit.

Don't withhold payment to accounts to be paid in closing without first discussing it with your Mortgage Loan Originator.

Don't make a "contract purchase offer" for an amount higher than your pre-qualification or pre-approved amount without first discussing the detail with your Mortgage Loan Originator.

Don't include the seller's personal property (furniture, machinery, etc.) in the purchase contract as only real estate is permissible.

Do provide photocopies of all requested documentation in a timely fashion.

Do ask and be informed.

Do keep your file current with the most recent copies of your pay stubs and bank statements.

Do continue to make all payments on credit cards, loans and rental or mortgage accounts as agreed.

Do maintain a paperwork trail of everything connected to your application. A good place to maintain this is the document folder provided to you at application.

Do provide a copy of your pre-qualification, pre-approval of commitment letter and your Mortgage Loan Originator's contact information to your realtor.

Do be cautious of homes referred to as needing TLC or "fixer-upper."

Do inquire of the real estate agents/seller as to whether or not a property may be located in a flood zone, since you may be required to obtain flood insurance coverage as a condition of your loan.

Do consider the merits of having a home inspection conducted/required as part of your purchase contract.

Laura Johnson has lived in Tehachapi for 49 years and her family's history in Tehachapi spans over 150 years. Laura has been in lending for 14 years and the real estate industry for 24 years. You can reach Laura at Nations Lending 1054-B Valley Blvd. Tehachapi, (661) 303-7853 or you can reach Jeff Lamonte at (805) 794-0444.