Mortgage Tips When Refinancing Your Home
Do not Open any new Credit Trade Lines Until Your Loan has Closed and Funded
Lenders now employ tracking systems that notify them when new credit accounts are opened. New accounts can impact your Debt-Ratio/Qualification. It also increases the amount of paperwork you will need to provide as any new accounts opened you will need to provide a recent statement to show the amount owed on the account and the monthly obligation.
Do not Make any Credit Inquiries Until Your Loan has Closed and Funded
Lenders are also notified if you make any new credit inquiries during the loan process. Please refrain from making any credit inquiries until after the loan closes and funds.
Foundation Mortgage Operates in a “Paperless Environment"
Please separate items as you scan them. For Example, if you are sending 3 bank statements and a tax return, break it up into 4 separate files. When you upload your loan documents to our system or email items to your loan officer, they get input into our paperless system more quickly. Try to make sure that there are no missing pages & that they are rotated & sorted in the correct order. The cleaner the attachments are the more quickly they will get entered into our system.
If you are Changing Insurance Agents, Select Them Early in the Process
Insurance figures into your Total Monthly Liability for the property and impacts your Debt Ratio. Your loan can not be fully approved without the Final Debt Ratio, therefore if you delay in selecting your insurance agent until the end of the process, it could delay your closing. If you are Refinancing a condo, we are not able to submit the Condo Master Insurance for approval without your contents policy (HO6 insurance). Condo insurance can take several days to get approved- therefore if you delay in selecting an agent for the HO6 coverage, it can delay the approval process. Please do not leave this item until the end of your process. Note: **If you change insurance agents, please notify your mortgage banker immediately.**
Read Your Loan Conditions Carefully and Return all Required Items Back to Your Loan Officer Quickly
We are unable to submit your loan to the Underwriter until all conditions are provided (they will not review items piecemealed). Pay close attention to the details of your Loan Conditions. If an updated bank statement is requested, make sure that all pages of the statement are provided. For Example, if the statement reads Pg. 1 of 6, double check that all 6 pages of the statement are supplied.
Liquidation of Funds Needed For Closing
Pay particular attention to conditions that require you to liquidate funds from Retirement, brokerage accounts etc. (If you are bringing cash to closing). Underwriters need to track and approve the liquidation prior to issuing final approval on your loan. If this step is put off too long it could delay your clear-to-close. Please carefully coordinate with your Loan Officer to ensure this is completed with ample time to get the liquidation reviewed/approved by underwriting.