We recently heard from a friend in the mortgage business about a client of his whose loan was making great progress through the approval progress. But, just when he needed to update the couple’s bank statement in the final stages, he discovered the couple was so excited about their new home they had gone on a shopping spree. Needless to say, it took a lot of work and a loan from their parents to get their loan approval back on track.
We work closely with our clients and their lenders to help keep loans on track and ready to close in a timely manner. We thought the following tips from Diversified Capital Funding were good reminders and worth repeating.
So, David Letterman-style, here are the top 10 things NOT to do when trying to get your loan approved:
10. Do not shop for a new car or agree to a pre-approved credit card offers. Any credit inquiry lowers your credit score, which is viewed negatively by lenders.
9. Do not take on any new debt. It reduces the amount you are eligible to borrow.
8. Do not file for divorce. Once filed, most lenders will not make the loan until the final decree is recorded.
7. Do not move your down payment money from one account to another. Lenders will need a paper trail to find it.
6. Do not lose track of any records related to stock liquidation for your down payment.
5. Do not change the source of your down payment. Any change could force the loan to be underwritten again.
4. Do not leave town without providing your loan agent and Realtor with contact numbers.
3. Do not quit or change your job. Lenders call your employer to verify you work there. If you’re gone, the loan process will be stopped.
2. Do not make late payments on any of your current loans or credit cards. It could jeopardize your loan escrow close.
1. Do not forget to tell your loan agent about any changes to the transaction. Last minute alterations, such as seller credits or termite work, can affect the closing dates.
As your real estates experts, we’re here to help. If you have any questions or need more information on this topic, give us a call.