There are 9 basic rules to follow when applying for a home loan, as the loan process is NOTHING like it was even 3 years ago.Β Lenders get very cautious when your life circumstances change during the period between applying for a mortgage and closing on it.Β You can never be toΒ clear and upfront with your lender which will save you time and frustration inΒ the end.Β Β Many buyers have a misconception that if they have good credit, some money in the bank and a decent income theyΒ can apply forΒ aΒ loan and the rest “just works its self out”.Β Not in the least.Β Expect document requests up till the last day.Β It has NOTHING to do with you as a buyer, it is just the way the process works these days.Β But,Β if you follow these rules during those critical weeks of closing on a loan you should be in good shape:
1- DO NOTΒ change employers, become self-employed r quit your job.
2- Do not take on a long-term debt such as buying a car, boat, RV or furniture.
3- Do not overly use your credit cards or let your accounts fall behind.
4- Do not spend any of your cash reserves (you will need enough set aside to cover closing costs if refinancing) you may bring in funds or show assets for reserves.
5- Do not omit any debts or liabilities from your loan application
6- Do not originate any inquiries into your credit history that will lead to any new credit debt
7- Do not make large deposits without first checking with your lender.Β If refinancing, this only applies if bringing funds in for closing or if you have to prove assets for reserves.
8- Do not co-sign a loan for anyone.
9- Do not change bank accounts.
Follow these rules and always disclose EVERYTHING to your lender during and after the loan application all the way through to closing.Β You will have a much more pleasant transaction!
