There
are four major things to avoid doing before applying for a loan and during the
loan process itself. Any one of these
four things can greatly impact your ability to qualify for a mortgage loan, so
it is critical to avoid doing any of the following until AFTER your loan is
closed.
IMPORTANT:
Your loan is funded and recorded (closed) when you get your keys on a purchase
transaction and for a refinance transaction your loan is closed when
you have gone through the 3 day right of rescission period and your loan has
been funded and recorded (you will receive a phone call or an e-mail from me or
my processing team that your loan has been completed!).
Here are the 4 things to avoid when purchasing or refinancing:
1. Do not change jobs
Changing jobs before or
during the loan process can create a real problem in qualifying you for a loan,
particularly if the employment is in a different line of work or at a lower
rate of pay. During the loan process
changing jobs can create time delays because the new job will need to be
verified. My closing department will verify your job right before we hit the
button to fund your loan! Don’t quit your job or change jobs after you sign the
loan papers, right before funding of your loan.
2. Do not switch banks or move
your money around
It is best to
leave your money right where it is until your loan is closed. Moving your money to a new bank or even into
a new account can wreak havoc with the verification process and with my
processing team. Please be nice to them! If there is an absolute need to do so, please
be sure to retain copies of all the receipts in the transaction. When my processing team asks you for them
(which they will!) you will have the necessary documentation.
3. Do not pay off bills
As I analyze
your debt to income, I will let you know if it is necessary to pay off bills to
help qualify for the loan. If you need
to pay off bills, I will explain the best way to pay them off to make
sure we have the evidence we need to prove that the bills have been paid.
4. Do not make any major
purchases
Many borrowers make the mistake of buying a new car,
some furniture or making another major purchase without realizing the impact it
can have on their ability to buy a home.
A large monthly payment can affect the amount of home you qualify for
and during the loan process itself it can actually make it extremely difficult
to get your loan approved! PLEASE talk
to me or my processing team BEFORE making any NEW major purchases!
If you must do any of the things listed above (even if you’ve only been pre-qualified for a purchase or refinance) contact me or my processing team immediately. We can help you if necessary and advise you of your options. By avoiding these four things, you can look forward to a successful loan closing! We look forward to helping you!
