Top Ten No-No's When Applying For a Home Loan
Top 10 No-No's when applying for a home loan: Getting a new mortgage loan is not what it used to be. Maybe that's a good thing, maybe not, but there are definitely some "best practices" to follow when you are in the market for a mortgage loan these days. While this top-10 list from our friends at Stanford Mortgage is obviously not all-inclusive, it's a pretty good guide that will help you eliminate some of the pitfalls in today's real estate market:
- Don't amend your tax return, it could cause significant delays.
- Don't close old credit card accounts.
- Don't pay off collections or charge offs during the loan underwriting process.
- Don't consolidate your debt onto 1 or 2 credit cards.
- Don't pay any account late. Stay current.
- Don't apply for any kind of new credit accounts and/or co-sign for a loan of any kind.
- Don't max out your credit card accounts, buy a car, buy furniture, or charge anything over $500 without first talking to your loan officer.
- Don't quit your job, change jobs, or take a medical/disability leave.
- Don't dispute credit bills once the loan process has started; all account disputes must be removed prior to underwriting.
- Don't make any cash deposits into your bank accounts. The underwriter could reject the use of all funds in the accounts.
Also remember this: Your lender will most likely pull your credit again 3 days before the close of escrow. Any and all credit report changes must be documented, re-underwritten, and re-approved prior to closing. If this happens, it can cause delays and could potentially cause your loan to be denied if major negative changes are found.
If you have any questions about the process of getting a new loan, or if you've found some listed properties you would like to see, feel free to contact us today.