Congratulations, you are in escrow for your home purchase or refinance! Below are a few tips that will help make the process smoother.
DEBTS
-Do not open any new credit accounts (revolving, installment or deferred payment/interest) or have any credit reports pulled. Keep the use of your credit cards to a minimum. A credit refresh report will be run just prior to funding and any inquiries will need to be explained and documented. Any increase in debt will be added and considered in qualifying calculations.
ASSETS
-Cash required to close that will be wired to the escrow company… It must come from accounts that have been verified and reflected on the application. For a purchase transaction, provide a copy of the canceled escrow deposit check.
-Any substantial deposit that are not from payroll will need to be explained and documented. Any transfer(s) from account(s) not on the application will need to explained and documented.
-If closing funds are currently in retirement account or securities, please provide proof of liquidation and deposit/ transfer into a liquid account that is documented and on the application. If from retirement, provide terms of liquidation, outlining any penalties or taxes due.
-If closing funds are in multiple accounts, provide proof of transfer/consolidation into the account you are using to make the final wire transfer to escrow. Once all funds are liquidated and consolidated, provide current balance verification showing all funds needed to close.
- For gifts from family members… provide the gift letter, bank statement from donor showing ability, and paper trail / copy of check (from same donor account) and proof of deposit into your account. Then provide new balance statement.
- For verification of assets, online screen print outs are not accepted. They typically do not show the full account number and/or full name and/or institutional name and logo. Full statements with all pages are required. If the statement says “page 1 of 15” all 15 pages must be provided, even if some pages seem irrelevant or only contain fine print information. WIRE CLOSING FUNDS TO ESCROW AT LEAST 2 DAYS BEFORE CLOSE DATE.
-For purchase transactions… please supply your home insurance quote and agent contact information within the next week to 10 days… This must be provided before we submit the loan to underwriting.
OTHER MISC
-To conform to fraud protection laws, all addresses reporting on credit report must be explained.
Any inquiries must be explained and new debts must be documented.
-Employment is re-verified right before funding. If any change in employment is anticipated or occurs during the loan process, please advise us immediately.
-If you are going to hold title in a revocable family trust, provide all pages of the trust agreement. The Title Company may require additional trust documentation.
Brought to you by Zach Taylor with RPM Mortgage, He can be reached at 619-813-7908
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Tags: Buying a Home, carlsbad home buyers, home buyer san diego, loan tips for buying a home, san diego home buyers, Tips when buying a home
