Major financial changes occur when purchasing a new home. It is important for lenders to be assured of the financial stability, responsibility, and viability of those to whom they are lending copious amounts of money. Unfortunately, many things in life are bound to change faster than you can say "bottom line". While staying on track during your mortgage loan application process might seem like a difficult task, here are five easy guidelines to make sure your financial train does not derail:
1. - EMPLOYMENT CHANGES
Whatever you do, DON'T CHANGE YOUR EMPLOYMENT STATUS! As previously stated, some things in life are simply unavoidable. However, and if within your power, please try not to change jobs while wading through the mortgage application process and don't switch from a salaried position to contract employment. Such change can create ineligibility for the loan which you are so eagerly applying and may result in the requirement that you obtain a co-signer.
2. - OTHER LOANS
Do not increase your debt load by applying for other loans such as auto, personal, and student. This will greatly impact your approval chances. At the very least, the original loan amount for which you initially applied will likely be significantly decreased if approved at all.
3. - SIGNIFICANT PURCHASES
While we all need a little retail therapy from time to time, try to hold off on that dream car until AFTER your mortgage is approved. Large purchases tend to raise the eyebrows of lenders which will lead to questions regarding your level of financial responsibility.
4. - MONETARY GIFTS
Perhaps your in-laws would like to gift you with financial assisstance for the down payment. Your lender will require a signed letter from your in-laws stating their relationship to you, address, financial gift amount, and a letter from them verifying that the contribution is not a loan.
5. - CREDIT CARDS
Neither open nor close credit card accounts during this time. Continue regular credit card payments, but do not sign up for new credit cards. This will not only result in lowering your credit score, it will also cause suspicion on the part of your lender.
If you'd like to learn more about the general mortgage application process, please don't hesitate to message Lang Premier Properties online or call us at 1-855-526-4466.