7 Things You Should NOT Do When Applying For A Home Loan! |
Don't deposit CASH into your bank accounts!
Please call your loan officer before you deposit any funds.
Don't buy or lease an auto!
Lenders look carefully at your debt-to-income ratio. A large payment such as a car lease or purchase can greatly impact those ratios and prevent you from qualifying for a home loan.
Don't move assets from one account to another!
These transfers show up as new deposits and complicate the application process because you must disclose and document the source of funds for each new account.
Don't change Jobs!
A new job may involve a probation period, which must be satisfied before income from the new job can be considered for qualifying purposes.
Don't buy new furniture or major appliances for your "new home"!
If the new purchases increase the amount of debt you are responsible for on a monthly basis, there is a possibility this may disqualify you from getting the loan, or cut down on the available funds you need for closing costs.
Don't close credit accounts or consolidate bills!
Capacity is King. The more credit you have, the better your credit score.
Don't pack or ship information needed for the loan application!
Important paperwork such as W-2 forms, divorce decrees, and tax returns should not be sent with your household goods. Duplicate copies take weeks to obtain, and could stall the closing date on your transaction.
Before you do any of these things, please contact your loan officer.