Do's and Dont's

Do's and Dont's of getting a loan:

Do:

Shop around for your loan.

Interview lenders and other service providers such as title company, insurance agent, etc.

READ everything before you sign it. (Your lender should explain everything to you, but make sure you fully understand everything before you sign.)

Be honest with your lender about everything that has to do with your loan.

Tell your lender about any credit problems you have had in the past. (It's better to know upfront that you cannot get a loan than to get your hopes up; your lender may be able to counsel you on how to fix any issues with your credit.)

Be wary of offers you receive in the mail or through email for financing. (While we are at it, be wary of the people you hear on the radio talking about how if you have bad credit, you can still get a loan.)

Pay your mortgage on time!!!! Even if there is a dispute. (You don't want to ruin your credit or risk foreclosure for anything.)

If you are having problems paying your mortgage, contact your loan servicer immediately!


DON'T:

Don't sign blank documents. (Have your loan originator put an X through the page if there is anything that you are worried about.)

Don't lie about your income. (Your lender will get pay stubs from you. If you don't know, tell them that you don't know.)

Don't lie about how long you have worked somewhere. (Again, your lender will verify employment.)

Don't overstate your assets. (Your lender will look at bank statements or any other assets you claim that you have.)

Don't change your income tax returns. (Your lender will look at all tax returns for the past 2 years.)

Don't list fake co-borrowers on your loan application. (Every borrower on the app has to have their credit report run. If the person doesn't show up, the lender will find out.)

Don't provide false documentation or permit anyone else to provide false documents about you.




All of this information comes from the US Department of Housing and Urban Development.