Navigate Through The Home Loan Process

Congratulations your offer has been accepted and you are now officially “in contract.” Within the next 30 days you will have your keys to your home and your Santa Rosa Mortgage will be in place.
That’s down the road, right now there’s several things we need to be focused on to avoid a course correction in your escrow. Follow these simple tips and you will be well on your way to being a happy homeowner.

Following is a list of helpful mortgage tips to help you navigate through the home loan process as well as escrow.

Do not change jobs or change job’s status. This may sound obvious, but it’s very important that you stay at your job during the escrow process. If an opportunity presents itself… wait. You don’t want to put yourself in position of jeopardizing your ability to obtain the home loan and subsequently the house you are in contract to purchase. You also want to make sure that you don’t change jobs status, in other words, do not change going from being an employee to being self-employed or vice versa. You also don’t want to make this change if you are thinking about getting a home loan to purchase a house down the road.

Do not make changes to your credit. Don’t go out and buy furniture for that house that is not closed yet on credit cards, again this seems pretty obvious, but it is very important that you do not change your credit card balances during escrow. You also do not want to close credit cards which could negatively impact your credit score. The only credit that should be run during the escrow process is the one that’s being run by your lender whom you’ve hired to help you obtain that Santa Rosa Mortgage.

Do not purchase anything till you have keys. This one goes without saying. Do not go out and purchase high ticket items or anything that results in a monthly debt payment. Your mortgage lender will require a certain amount of funds to be in your bank account during the escrow process, you don’t want to show money randomly leaving your bank account when you are trying to obtain a Santa Rosa Mortgage.

What else can I do to navigate through the home loan process?

Do not switch lenders. If you switch your mortgage lender 10 days into escrow for example you could be jeopardizing your transaction because the new lender you have hired may not be able to perform in 20 days if you have a 30 day contract. Pick the mortgage lender you feel the most comfortable with and stick with them as long as they are local and upfront. An .125% lower in rate with another lender is not worth jeopardizing the whole transaction let alone your earnest money deposit. Switch lenders if you must during the preapproval phase only.

Do not transfer money around. Let’s say all of your paycheck goes into ABC checking account. Stop right there! If all of your money goes into ABC account, use ABC account for proof of funds to close, do transfer funds from ABC account into another account. Why? It’s simply because all paper trails must be sourced. It is much easier to provide one bank statement with proof of funds to close then to provide two or three statements documenting the entire paper trail.

Be mindful these easy mortgage tips and you will be well on your way to closing your escrow early if not on time. Remember you can always contact me via e-mail Scott.Sheldon@nafinc.com. I can help you navigate through the home loan process for a Santa Rosa Mortgage.

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RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

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