How NOT to Mess Up Your NJ Mortgage

Those last few days before closing on a new home in New Jersey can be nerve wracking.  

I asked Tom Wragg (First Choice Bank) to put together this list for my first time home buyers in New Jersey:

From Contract to Close: How NOT to Mess Up Your NJ Mortgage

In this environment, it is important to adhere to the following guidelines in New Jersey in order for your mortgage company to maintain your mortgage until closing: 

1. Keep in Touch with your Mortgage Banker
   1. Make them aware of any significant changes in income, assets or employment
   2. You should be speaking with your Mortgage Banker at least once a week when you are in process
2. Keep your Mortgage Banker informed
   1. Let them know everything so they can preserve your transaction
   2. Communication is the key to any successful relationship
3. Dont make any large deposits into the bank without telling your Mortgage Banker
   1. Gifts are OK as long as underwriting knows about it
   2. Tell your Mortgage Banker in advance if you plan to make any deposits that dont match your standard cycles
4. Keep Your Job
   1. Quitting your job or getting fired when you are trying to buy a house in NJ is a No-No
   2. Getting a new job in the same industry is generally OK
   3. You Must tell your Mortgage Banker immediately
5. No Big Ticket Purchases That Will End Up on Your Credit Report
   1. Any automobile, second home, investment property or business investments should be run by your Mortgage Banker as this could effect the total amount of the mortgage you qualify for
   2. Make sure to tell your Mortgage Banker if you plan to buy something, with financing, during the mortgage process
6. Sell Your Current Home Before Buying the Next One
   1. Make every effort to either sell or rent your current home as lenders are now adding contingencies for sale or rental of your current property before they will allow you to buy the next one
   2. If your sale falls through, if you cannot sell or if you cannot rent out the current property you MUST tell your Mortgage Banker
7. Dont Move
   1. If you are planning to move residences before you close on a mortgage you MUST tell your Mortgage Banker
       i.      An unannounced change in address is a red flag for mortgage companies and underwriters
      ii.      If you are planning to move before you close you MUST tell your Mortgage Banker
8. Raises and Bonuses are OK
   1. If you get a raise or a bonus you MUST tell your Mortgage Banker
   2. Increased income is excellent and fantastic and can sometimes get you a higher loan amount in NJ or better your underwriting scenario
   3. Share this information with your Mortgage Banker
9. Do Not Apply Elsewhere
   1. If you plan to apply for more than one mortgage you should tell your Mortgage Banker
   2. No one wants to work for nothing €“ making multiple applications without telling your Mortgage Banker is dishonest and selfish
   3. Apply with one lender and make it stick €“ dont waste peoples time by deciding to go with another lender at the very last minute
10. Shop for Homeowners Insurance
    1. Getting a good rate on Homeowners Insurance is a must
    2. Make sure you are comparing different quotes and different coverage levels depending on your needs
    3. Make sure you get a copy of the Declaration Page and the Paid Receipt to your Mortgage Banker

  

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