Do’s and Don’ts Before Closing a Loan

We have many clients that ask what should they DO and NOT DO before closing on a primary home, second home or investment property. Following this list will help your closing process go significantly smoother without any last minute surprises. Below is a great list of DO’s and Dont’s prepared by Kristen Pope of Gulf Coast Bank and Trust.

  • DO bring a cashier’s check made payable to the title company for the amount of your closing costs.
  • DO alert your lender if your salary or other compensation changes from what is documented on your loan application.
  • DO notify your lender if your address changes from what appears on your original loan application.
  • DO document complete rental and mortgage information as your lender will verify information for all of your residences within the last two years.
  • DO acquire homeowner’s insurance with minimum coverage equal to the amount of your total loan or the replacement value of the house.
  • DO keep documentation on any large and significant deposits into your bank accounts. This type of “paper trail” is compiled of copies of all paperwork necessary to prove a financial transaction: copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.
  • DO report if you transfer from one account to another. Provide records on such transactions.
  • DO verify that you have a clear termite inspection on the property, if the termite report is not clear, provide a receipt for treatment that shows the chemicals and the amount used for treatment.
  • DON’T acquire any additional lines of credit or make any large purchases on existing credit without first consulting your lender. As examples: purchasing a car or buying a major appliance for your new home will negatively change your debt-to-income ratios.