Applying for any new credit during the mortgage process up to and including the day of your closing could negatively impact the qualifying of your mortgage application.  This includes credit cards, 0% financing offers, auto loans, etc.  Please do not apply for any new credit.  If there is a need to open new credit, please consult with your Loan Officer or Loan Analyst.

A change or loss in job could jeopardize your loan approval.  Verification of employment is required within 10 days prior to closing and may be re-verified up to and including the day of closing to ensure that all borrowers are fully employed with no status changes.  If there is a need to change jobs during the mortgage process, please consult with your Loan Officer or Loan Analyst immediately before making any changes.

If your Federal Tax Returns are used in the qualifying of your mortgage loan, we will be required to verify that the same year’s taxes have been properly received and processed by the IRS with any taxes paid by obtaining Tax Transcripts.  This is especially important for borrowers who are self-employed or own rental properties.

To ensure a streamline mortgage process that will save you time and reduce documentation, we encourage you to use the AccountChek by FormFree asset verification service to provide Salem Five with all necessary bank account information.  For more information on AccountChek by FormFree, click here.

Lenders are required to verify all sources of funds utilized in a mortgage transaction. All large deposits must be fully verified from an acceptable source. Unsecured loans such as borrowed funds and cash are not acceptable sources. Since all transferred will need to be sources, it’s wise to avoid moving funds between accounts.

If you need to sell an asset such as stock, a car, furniture, antique, etc. for funds required for your mortgage transaction, be sure you fully document the asset via checks, bill of sale, etc. no less than 14 days prior to your closing date.  You will also need to evidence the ownership of that asset as well as its market value.

Lenders utilize fraud tools to detect many items on borrowers including the ownership of other properties.  It is important to include all properties that you currently own including properties that may be held in trust, hold no mortgage or co-signed loans.  Other properties listed on your credit or fraud reports may require an explanation on the properties detected.

All documentation utilized to support your mortgage application must be received, reviewed, and verified prior to your closing date.  It is important that you submit all required documentation to your Loan Analyst no less than 14 days prior to closing to ensure a smooth and timely closing.  This includes any insurance documentation such as homeowner’s insurance or flood insurance (if applicable).