Tips for Loan Approval
When it comes to buying a new property loan approval is critical. At this point in the process you have been pre-approved, found a home, made an offer, and are under contract... Now, the next large hurtle, obtaining loan approval.
Here are some tips that Deb & Drew recommend as well as few things of which to steer clear.
- Call your loan officer if you have questions
- Provide requested documentation promptly and in its entirety
- Continue living in your current residence
- Continue making mortgage or rent payments
- Keep working at your current employer
- Keep the same insurance company
- Stay current on all existing accounts
- Keep good financial records
- Notify your loan office if you expect to receive gift funds from a relative, employer, union hall, or non-profit organization
- Notify your loan office of any depletion of funds needed to close
- Change employment or marital status during the loan process
- Make and major purchases (car, furniture, jewelry, etc)
- Change bank accounts
- Make any large cash deposits into bank accounts
- Close any credit accounts
- Max out or overcharge credit accounts
- Take out a new loan or co-sign on a loan
- Open a new cell phone account
- Pay off loans, collections, credit cards without discussing it with your loan officer
- Take out new student loans without contacting your loan officer
- Take out a cash advance from your credit card during the loan process
Some of these items may seem odd. Here is the rub... If you make major changes in the middle of this process, then you can jeopardize your chances of obtaining loan approval. Without the approval you may not be able to purchase your new home and you could lose your option money, inspection money, and your time.
So, before you make any major moves, be sure to consult your REALTOR® or loan officer!