What You Need to Know

Do’s and Don’ts

First Choice Loan Services Inc. recommends several to-do’s (and a few ‘don’ts’) while going through the home loan qualification process. Check out a list below to help your mortgage experience go smoothly and seamlessly.

Do’s

  • Let First Choice Loan Services know if your salary (or your co-borrower’s salary) changes from that which is documented on your loan application.
  • Notify First Choice Loan Services if your address changes from what appears on your loan application. This is important because First Choice Loan Services will need to complete a rental and mortgage verification for all of your residences for the past two years.
  • Keep existing credit card accounts open, active, and current.
  • Obtain homeowner’s insurance with coverage equal to the amount of your total loan or the house’s replacement value.
  • Share your homeowner’s insurance agent’s name with First Choice Loan Services prior to closing.
  • Document any significant deposits into your bank accounts to prove financial transactions. A ‘paper trail’ will be collected by First Choice Loan Services; this will include all paperwork necessary to prove a financial transaction such as copies of all checks, deposit slips, loan paperwork, and forms to liquidate assets.
  • Report and record any transferred funds. Documentation of these transfers will need to be submitted to First Choice Loan Services.
  • Provide verification of termite inspection on the property. A receipt of termite treatment sharing the chemicals and the amount used will need to be given to First Choice Loan Services if the termite report is not clear.
  • Bring a cashier’s check made payable to the title company for the amount of your closing costs.

Don’ts

  • Apply for any additional lines of credit.
  • Make any large purchases such as a car or major appliances on existing credit.
  • Deposit large amounts into any existing accounts.
  • Consolidate debt to one or two credit cards.
  • Change jobs without consulting First Choice Loan Services, as a change in salary could affect your qualification. Borrowers must have a two-year history if counting bonuses and commissions as income. Also, on the day of closing, First Choice Loan Services may be required to verify your employment.
  • Co-sign with anyone to make a purchase or obtain a line of credit. This will show up on your credit report as additional debt.
  • Negotiate your contract with an allowance and expect to get money back at closing. Borrowers are able to use an allowance to pay prepaids and/or closing costs.
  • Worry. When you work with First Choice Loan Services, you are working with a mortgage lender who has your best interest at heart and will work tirelessly to provide you service beyond belief.

If anything from this list seems unclear or if you have any other questions regarding what to do or not to do during your loan process, please reach out to your trusted Loan Originator with First Choice Loan Services!