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. Lenders get very cautious when your life circumstances change during the period between applying for a mortgage and closing on it. You can never be to clear and upfront with your lender which will save you time and frustration in the end. Many buyers have a misconception that if they have good credit, some money in the bank and a decent income they can apply for a loan and the rest “just works its self out”. Not in the least. Expect document requests up till the last day. It has NOTHING to do with you as a buyer, it is just the way the process works these days. But, if you follow these rules during those critical weeks of closing on a loan you should be in good shape:
1- DO NOT 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. 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. You will have a much more pleasant transaction!