HOW TO AVOID MAJOR HEADACHES
WHEN PURCHASING A HOME
There are a number of things you should avoid doing before applying for a home loan and during the loan process itself. Any one of the following things can greatly impact your ability to obtain a mortgage loan. It is critical to avoid doing any of the following until AFTER you loan has closed escrow:
DO NOT CHANGE YOUR JOB
Changing jobs before or during the loan process can create real problems in qualifying for a mortgage. It can also create delays as any new employment or income will need to be verified.
DO NOT CHANGE BANKS OR MOVE YOUR MONEY AROUND
Moving your money to a new bank can wreak havoc with the verification process. It is best to leave your money where it is until needed for closing, unless otherwise recommended by your loan officer.
DO NOT PAY OFF DEBTS
Your loan officer will advise you if and when it is necessary to pay off debts to help you qualify for the loan. He/she will also advise you of the best way to pay off debts to make sure that the evidence needed to prove the bills have been paid is sufficient.
DO NOT MAKE ANY MAJOR PURCHASES
Many borrowers make the mistake of buying a new car, refrigerator or making other major purchases without realizing the impact it can have on their ability to buy a home. A new, or additional monthly payment can affect the amount of the loan that you qualify for, and during the loan process itself, can actually make it difficult to get your loan approved. If it is necessary for you to make a major purchase during the loan process, be sure to consult with your loan officer first.
DO NOT FAIL TO DISCLOSE FINANCIAL/CREDIT INFORMATION
Surprises during the loan process can jeopardize your loan approval. Your Loan officer can help resolve most problems if you disclose them upfront