Taking Over Someones Mortgage Payments – Dos & Don’ts

Taking Over Someones Mortgage Payments – Dos & Donts

Anyone can sell you a mortgage; GVCP will show you how to use it effectively!

When you are taking over some ones mortgage payments we pride ourselves in offering great mortgage strategies and solutions to you, and then helping you pick the best mortgage product to suit your needs.

While you are considering the purchase of a new home or exploring new financing on your current home, you should not do anything that will have an adverse effect on your loan from this point through the rest of the process.

Given below are the Do’s and Don’ts’ of taking over some ones mortgage payments:

DO the Following:

  • Get preapproved.
  • Establish a reasonable post-purchase budget & savings.
  • Stay current on all your existing bills like rent, credit cards, car payments and other accounts.
  • Keep credit card balances at less than 40% of available credit limit.
  • Gather all necessary documents.
  • Remain with the same employers with a viable income.
  • Call your lender with questions or information about a change in your finances or lifestyle such as marriage.
  • Liquidate your assets for the down payment and closing costs two weeks before your closing on your home.
  • Validate who is providing gift funds; funds need to be wired to the Elevations account two weeks prior to closing on your home.

Know your homeowner’s insurance agent’s name and phone number. Be prepared to have the policy in place two weeks before closing on your home. You do not begin to pay any insurance premium until you own the home; however, you must have the insurance policy in place two weeks prior to the purchase of your home.

DON’T do the following when taking over some ones Mortgage Payments:

  • Don’t make major purchases (cars, furniture, campers & boats).
  • Don’t open new credit cards, transfer balances or set up any deferred payment plans.
  • Don’t rectify charge offs or pay on collections unless advised to do so by your lender.
  • Don’t close accounts, consolidate or increase debt.
  • Don’t overdraw your accounts and avoid NSF checks.
  • Don’t change jobs or companies prior to closing date.
  • Don’t give notice to your landlord until everything is approved.

Documentation Checklist when taking over some ones Mortgage Payments:

  • Estimated property value and loan amount sought.
  • Birth date and social security number for each borrower.
  • Address history for the last 2 years Two years of employment history, including addresses and phone numbers for each borrower.
  • Current income for each borrower including most recent pay stubs (past 30 days) W-2 for each of the past two years.
  • If self-employed or commission income – please provide tax returns, including and 1099 forms, schedules and taxes from businesses you own, for last 2 years Bank statements (all pages) for last 2 months of the account that your down payment is coming Homeowners insurance agent information, name and phone number.
  • Documents showing your credit report letters of explanation for cash out, late payments, credit issues and employment gaps (last 2 years) and all debts, especially those not included.
  • Divorce decree(s) if applicable canceled checks for child support/alimony if applicable if utilizing non-wage income, proof of receipt (award letter) and continuance.

Bankruptcy documents if applicable Rental/lease agreements for investment properties.

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