Dos and Don'ts During the Mortgage Underwriting Process

The journey to homeownership involves various stages, and one of the most important steps is the mortgage underwriting process. This phase determines whether your loan will be approved or not.

To ensure a smooth underwriting experience with Supreme Lending, it's essential to follow a set of Do's and Don'ts.

Do's

Maintain Consistent Debt Payments:

Make minimum monthly payments on your consumer debt until the loan closes. Any deviation from this may have adverse effects on your mortgage application.

Timely Mortgage Payments:

Ensure your mortgage payments are made on time and are no more than 15 days late. Any delay beyond this timeframe may pose risks to your loan approval.

Cooperate with the Title Company:

Respond to calls from the Title Company. Occasionally, there may be outdated or unreleased liens, which can complicate the ownership of your property. Addressing these issues promptly is vital for clearing your property's title in preparation for closing.

Submit Requested Documents Promptly:

Provide any documents requested by Supreme Lending immediately. Timely submission is crucial, as documents can have expiration dates, and delays may affect your application.

Retain Financial Documents:

Hold onto electronic and paper copies of pay stubs, bank statements, and other financial documents until the loan closes. You may be required to provide them during the underwriting process.

Don'ts

Avoid Job Changes or Retirement:

Refrain from resigning or retiring during the loan process without consulting your Supreme Lending mortgage expert. Changes in employment status may impact your loan approval.

No New Credit Accounts:

Do not open or apply for new credit accounts before your mortgage loan closes. New accounts or inquiries can be easily identified during underwriting and may jeopardize your application. Our experienced professionals understand that life happens, and should a need arise for situations such as applying for student loans or financing a child's upcoming college tuition, we ask that you discuss your plans with a member of our team before you take action.

Avoid Balance Transfers:

Refrain from making balance transfers on existing credit card balances. Such actions may slow down the mortgage application process.

Don't Pay Off Existing Credit Accounts in Full:

Avoid paying off existing consumer credit accounts (e.g. auto loans, credit cards, etc.) in full unless it aligns with the natural progression of making minimum monthly payments.

Successfully navigating the mortgage underwriting process requires careful attention to detail and adherence to specific guidelines. By following the Do's and Don'ts outlined above, you may increase the likelihood of a smooth and successful loan approval. If you have any questions or concerns about your loan, don't hesitate to reach out to the Supreme Lending team for assistance. Remember, open communication and timely action are key to a positive mortgage underwriting experience.