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What Should You Never Tell Your Mortgage Lender?
- Jacqueline OShaughnessy
- 5 days ago
- 3 min read
By Jacqueline O'Shaughnessy, Loan Officer / Private Capital, NMLS #382900 — South Wind Financial, Inc, NMLS #9462 — Las Vegas, NV
People ask me:
“What should I never tell my mortgage lender?”
My answer:
Tell me everything.
Your mortgage lender is probably the last person you want to keep financial information from when you're buying or refinancing a home. Something that seems insignificant to you can affect your loan approval, create additional documentation requirements, or delay your closing.
More importantly, if you call me before making a financial change, we may be able to avoid the problem altogether.
“I'm Thinking About Quitting My Job.”
Please tell me before you do it.
Your employment and income are a major part of qualifying for a mortgage, and lenders may verify employment again shortly before closing. Changing jobs, reducing your hours, switching from salaried to commission income, or becoming self-employed can affect your qualification. That doesn't mean you can't change jobs. It means we need to discuss how the change could affect your loan before you make it.
“I Just Bought a New Car.”
That new $700 monthly payment can change your debt-to-income ratio. One of the biggest mistakes borrowers make is assuming that once they're pre-approved, their credit and debts no longer matter. Lenders may obtain updated information before closing.
Before financing a car, furniture, appliances, or anything else while you're in the mortgage process, call me first.
“I Opened a New Credit Card.”
Please tell me before you do it.
New credit can result in an inquiry, a new account, and potentially a new monthly payment. Even if the purchase comes with “no payments for 12 months,” don't assume it won't matter to your mortgage. Ask first.
“I Moved Money Around Between My Accounts.”
Please tell me before you do it.
Moving your own money isn't necessarily a problem. Documenting it can be. Large or unusual deposits and transfers may need to be explained and documented. Moving money through several accounts right before closing can create an unnecessary paper trail at exactly the wrong time.
If you're preparing money for your down payment or closing costs, ask your lender where it should be and when it should be moved.
“My Family Gave Me Money for the Down Payment.”
Please tell me before you do it.
Gift funds are permitted with many mortgage programs, but there are rules about who can provide them and documentation may be required. Don't try to make gift money look like your own savings. Tell your lender where the money came from so it can be documented correctly from the beginning.
“I'm Going to Buy Furniture Before Closing.”
Please tell me before you do it.
I understand the temptation. You've found the house, you're planning where everything will go, and the furniture store is offering a great financing deal. The house isn't yours until it closes. Lack of financial reserves or a new debt before closing can potentially change your qualification. There will be plenty of time to buy the couch after you have the keys.
“I Forgot to Mention This Debt.”
Tell me now.
An undisclosed debt doesn't become less important because we're further into the loan process. The sooner I know about something, the more time we have to determine whether it affects the loan and what options are available. Surprises are much easier to deal with before underwriting finds them.
So, What Should You Never Tell Your Mortgage Lender?
Tell me everything. Tell me before you do it.
Before changing jobs, opening credit, financing a vehicle, moving large amounts of money, accepting gift funds, or making another significant financial decision during your mortgage process, make a quick phone call.
Ready to Take the Next Step?
📞 Schedule a complimentary 15-minute mortgage consultation today. 702.429.3994
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All my best
Jacqueline O'ShaughnessyLoan Officer/Private Capital
South Wind Financial, Inc
6655 W. Sahara Ave., suite D114
Las Vegas, NV 89148
702-429-3994 cell
702-543-7535 eFax
Company NMLS #9462
Agent # 382900
Agent license #6603
CA-DFP1382900
AZ 1032777
FL L0101736
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