Don’t accidentally sabotage your efforts to get a loan!
Reprinted with permission from Holly at Eagle Mortgage Company.
What not to do when applying for a loan. In Holly’s 23+ years in business and as the owner of Eagle Mortgage, she has learned that customers often have some incorrect ideas about how to improve their chances of getting a mortgage. Make sure you have the correct information with these tips of what NOT to do within six months of applying for a mortgage. In our Omaha Real Estate experience, the Blythe Team agrees with Holly on the points below.
1. Don’t buy or lease an automobile.
Lenders look closely at your debt-to-income ratios. A large payment such as a car lease or purchase can impact those ratios and prevent you from qualifying.
2. Don’t increase balances on credit cards.
If the purchases increase the amount of debt you are responsible for monthly, there is a possibility this may disqualify you from getting the loan.
3. Don’t attempt to consolidate bills before speaking to your loan officer.
The loan officer will advise if this needs to be done.
4. If possible, 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. A new job may pay commission, overtime or bonus income versus a guaranteed salary. Income other than a guaranteed salary must have a minimum of two years history before we can use it to qualify.
5. Don’t run your own credit report.
This will show up as an inquiry on your credit report. Inquiries can lower your credit scores. All inquiries must be explained in writing, i.e. do you have new or more debt.
6. And definitely make sure to pay all your debts on time each month!
Any late payments will be made known to us and might be reason for decline by underwriting.
Once you have applied for a loan, keep these further tips in mind:
1. Don’t pack or ship information needed for the loan application.
Important paperwork such as W-2’s, bank statements, divorce decrees, and tax returns should not be packed with your other household items. Finding copies could take weeks and delay the closing date of your loan.
2. Don’t move assets from one bank to another or from account to account.
These transfers show up as new deposits and complicate the application process, as you must then disclose and document the source of funds for each account. The lender can verify each account as it currently exists. Consolidate your accounts later if you need to. Do not deposit Cash into your accounts.
If you’re ready to sell or buy a house, contact the award-winning Blythe Team today!