HOW TO AVOID MAJOR HEADACHES WHEN FINANCING A HOME

There are a number of things you should avoid before applying for a home loan and during the home loan process itself. Any one of the following things can greatly impact your ability to obtain a mortgage loan. It is critical to avoid any of the following until AFTER your loan has closed escrow:

1. DO NOT CHANGE YOUR JOB

If you change jobs before or during the loan process it can create real problems in your qualifying for a home loan, particularly if your new job is in a different line of work or at a lower rate of pay. During the loan process, it can also create time delays, as the new job will need to be verified.

2. DO NOT CHANGE BANKS OR MOVE YOUR MONEY AROUND

Moving your money to a new bank can wreak havoc with the verification process. It is best to leave your money where it is until your loan closes, unless otherwise recommended by your loan officer.

3. DO NOT PAY OFF BILLS

Your loan officer will advise you if and when it is necessary to pay off bills to help you qualify for the loan. He/she will also advise you of the best way to pay off bills to make sure that the evidence needed to prove that the bills have been paid is sufficient.

4. DO NOT MAKE ANY MAJOR PURCHASES

Many borrowers make the mistake of buying a new car, refrigerator or making another major purchase without realizing the impact it can have on their ability to buy a home. A new, additional monthly payment can affect the amount of home you qualify for and, during the loan process itself, actually make it difficult to get your loan approved. If it is necessary for you to make a major purchase during your loan process, be sure to consult with your loan officer first.

5. DO NOT FAIL TO DISCLOSE FINANCIAL/CREDIT INFORMATION

Surprises during the loan process can make it difficult for the lender to approve your loan. Disclosure to the loan officer up-front allows time to work on potential problems.