Do you know what NOT to do during a Mortgage?


By Tim Cone, Genesee Regional Bank

It is common to hear about what is required during the Mortgage process…here is a list of what not to do to help make the process smooth!

Do NOT change jobs
Any change in your job status will cause your file to be re-underwritten and reconsidered. This may cause a delay with your loan process or possible denial of your loan application.

Do NOT co-sign a loan for anyone 
During the loan process, any changes to your credit report or status could negatively affect your ability to close your loan on time or at all. Co-signing any type of car loan, student loan or any other loan would result in inquiries into your credit and additional financial responsibilities. All of these could result in loan closing delays or denials.

Do NOT buy a vehicle 
Applying for credit to purchase a vehicle will be recorded as an inquiry into your credit by credit bureaus. This may decrease your credit score or decrease the amount of money that you may qualify for when purchasing a home. It is very important to avoid applying for these types of loans throughout the mortgage process.

Do NOT use credit cards excessively or make late payments on any of your accounts
Excessive use of credit cards can have two negative effects on your credit rating. One, inquiries will be recorded by credit bureaus and could decrease your credit score. Two, high balances on credit cards can affect your debt to income ratio and could decrease your credit score. Also, late payments of any sort can decrease your credit score, increase your mortgage interest rate, delay loan closing or cause loan denial.

Do NOT spend money you have set aside for closing 
Most conventional loans require two months of reserve money to be verified in your available financial accounts. Once it has been verified for use at closing, spending these reserve funds may result in loan closing delays or even loan denial.

Do NOT omit debts or liabilities from your loan application 
Please be very honest and clear about all of your debts or liabilities early in the loan application process. Having the right information will allow your Mortgage Originator to provide you the best qualifying loan rate. Undisclosed debts or liabilities that are found later in the process may affect the amount of money you qualify for in addition to causing delays or even denial of your mortgage.

Do NOT buy furniture, appliances or household items before closing 
Although people are anxious to furnish their new home, during the loan process is not the right time. Large purchases causing deductions in your banking accounts or additional debt on credit cards can negatively affect your loan process resulting in delays or even denial.

Do NOT originate any inquiries into your credit
Multiple inquiries into your credit may result in a decreased credit score. As this applies to vehicles, appliances and household items, it also applies to any credit checks. Applying for additional lines of credit could negatively affect your ability to qualify for a home mortgage.

Do NOT make large deposits without first checking with your Mortgage Originator
Abnormal or large deposits into checking, savings or any financial account must have money sources verified by Underwriting. Making these unusual deposits could result in loan processing delays or even denial.

Do NOT change banks
Because the loan process requires a two month history of reserve funds, opening new financial accounts near a closing date may void this history. New bank accounts will not have the two month history available and cannot be used. This may result in loan closing delays or denial.

To learn more about GRB Mortgage and discuss Mortgage options, contact Tim Cone @ GRB Mortgage, 585.236.6240 or visit