This information is may change with time and laws, so please check with your lender at the time of purchase for their list of Loan Killers. When buyers start dreaming of buying a new home they will meet with a lender to get a pre-approval. This means the lender has pulled their credit and done some verifying of their income and assets. In the excitement of purchasing a home it is to forget that the approval depends on that verified info remaining the same. Here are some rules to live by during the quest for a new home.
1. Don’t buy or lease a car. Underwriters look very carefully at your debt-to-income ratios and a large payment such as a lease or car payment can dramatically increase those ratios. It could impact your ability to qualify.
2. Don’t move assets from on bank to another during or right before your loan processing. This will show up as a large deposit or a new account which complicates the approval process. Any large deposit or a new account will require that the source of those funds be documented.
3. Discuss with us any potential job changes BEFORE you make a move. A new job may require a probation period which must be completed before the income from that job can be used for qualifying purposes.
4. Don’t buy new furniture or major appliances. We run a credit report right before closing and any new inquiries on it will need to be addressed. Any new obligations will need to be explained and included in your qualifying ratios.
5. Don’t run a credit report on yourself. This will show up on the lender’s credit report as an inquiry and will need to be explained. It may also lower your credit score.
6. Don’t attempt to consolidate your bills before talking to us. We can advise if this needs to be done and how best to do it.
7. Don’t pack or ship information that may be needed for your loan application. Important paperwork like your tax returns, W-2’s, divorce decrees or DD214 should not be sent with your household goods. Getting duplicates of these necessary documents can take a long time and could hold up your approval and loan closing.
If you have already done any of these things or know you will need to, please let us know even if you have already been pre-qualified!
This information was pulled from material from my favorite lender.