1. Don’t make ANY late payments!
Some have the false belief that once they have applied for and been pre-approved for a loan, they don’t need to concern themselves with staying current on all payments. Wrong! If you have a late payment, even on a $10.00 monthly credit card it could mean the difference between YES and NO on your loan. Late payments on a Mortgage or Rent can mean a Decline on a home loan for 12 to 24 months!
2. Don’t buy or lease an auto!
Lenders look carefully at your monthly debt obligations. A large payment such as a car lease or purchase can greatly impact those ratios and prevent you from qualifying for a home loan.
3. Don’t move assets from one bank account to another!
These transfers show up as new deposits and complicate the application process, as you must then disclose and document the source of funds for each new account. The lender can verify each account as it currently exists. You can consolidate your accounts later if you need to. If you are getting funds from a gift, the transfer of the funds has to be done and documented a certain way to be used towards down payment and costs.
4. Don’t change jobs if you can help it!
A new job may involve a probation period, which must be satisfied before income from the new job can be considered for qualifying purposes. If your job is Part time or Temporary, this is very important information to disclose up-front.
5. Don’t buy new furniture or major appliances for your “new
home!”
If the new purchases increase the amount of debt you are responsible for on a monthly basis, there is the possibility this may disqualify you from getting the loan, or cut down on the available funds you need to meet closing costs. New furniture, refrigerator or bed does you zero good if the house you would like to buy doesn’t end up being yours.
6. Don’t run a Credit report on yourself or have anyone pull
your credit!
This will show as an inquiry on your lender’s credit report and could lower your Credit score 7-10 points per credit pull! If you are approved for a “score driven” loan (one that requires a certain score to qualify) you may have just lost your approval. Loans that do not have score requirements need inquiries explained in writing and/or
documented.
7. Don’t attempt to consolidate bills before speaking with
your lender!
Moving around Credit balances can destroy your credit score! Ask first before you change any balances around.
8. Don’t pack or ship information needed for the loan
application!
Important paperwork such as W-2 forms, divorce decrees, and tax returns should not be sent with your household goods. Duplicate copies take weeks to obtain, and could stall the closing date on your transaction.
If you would like more information about obtaining a home loan, please go to our Calendar/Reservations page and sign up for one of our FREE workshops.
