Frequently Asked Mortgage Questions

• How do I get started with a mortgage at Mercantile Bank?

  Start by visiting mercbank.com/mortgage and find which solution is best for you. Below you can find our “Apply Now” button or you can find a lender in your area below to get started. All of our lenders are friendly, knowledgeable, and ready to assist you!

  Apply Now     Find A Loan Officer

• What documents do I need to apply for a mortgage?

  When you apply for a mortgage, lenders require documentation to verify your identity, income, assets, employment, and debts. Below is a list of the standard documents needed. Please note that additional documentation may be required depending on your specific situation.

  • Copy of Driver’s License or State ID

  • Two most recent paystubs

  • Two most recent W2s (and/or 1099)

  • Tax returns (last 2 years)

  • Two most recent checking and savings official account statements (all pages)

• What is earnest money, and when is it due?

  Earnest money is a good faith deposit a buyer gives when making an offer on a home. It shows the seller you’re serious about purchasing and willing to move forward under the contract terms.

  When it is due is defined in the purchase agreement. Most commonly, it’s due within 1-3 business days after offer acceptance, or immediately with the offer. 

• What should I avoid doing while I’m applying for a mortgage?

  When you’re in the middle of a mortgage application, your financial profile is under a microscope. Even small changes can delay or de-rail your approval. Here’s a clear list of what to avoid until after closing:

  • Don’t make big purchases

    • Avoid buying anything expensive, especially on credit like cars, furniture, appliances, or electronics. Even if you can afford it, new debt increases your debt-to-income (DTI) ratio, which can hurt approval or change your loan terms.

  • Don’t open or close credit accounts

    • Opening new accounts can drop your credit score temporarily due to your average account age or trigger hard inquiries; closing them can affect your credit utilization and history.

  • Don’t change jobs (if possible)

    • Avoid switching employers or going from W-2 to self-employed. Don’t change pay structure like going from salary to commission/bonus heavy. Lenders need stable, predictable income – changes can require re-approval.

  • Don’t miss payments

    • Keep all bills paid on time (credit cards, loans, utilities). One missed payment can drop your credit score and trigger a lender review.

  • Don’t move or transfer money around randomly

    • Avoid large unexplained deposits or transfers, and don’t move money between accounts without documentation. Lenders must source and verify funds; unexplained activity can delay closing.

  • Don’t deposit large amounts of cash

    • Cash deposits are hard to document; lenders may exclude those funds from your available assets if they can’t be traced.

  • Don’t co-sign for anyone

    • Even if you’re not making the payments, that debt will count against you and can hurt your debt-to-income (DTI) ratio.

  • Don’t let your bank account balance drop too low

    • Keep enough funds for your down payment, closing costs, and any required reserves. Large spending can make it look like you no longer qualify for the loan.

  • Don’t ignore lender request

    • It’s best to respond quickly to document requests, delays can push back closing or even cause a denial. 

  * Follow this simple rule of thumb: If it affects your credit, income, or bank account – don’t do it without checking first.