THE DOíS/DONíTíS WHEN APPLYING FOR A LOAN
The process of applying for a home purchase loan is
significantly different than trying to acquire any other form of credit. Any of
the following situations can seriously impact your ability to qualify for a home
loan. If you are contemplating the purchase of a home, you will find it helpful
to avoid the following situations. If
one of the following unavoidably occurs, contact your loan officer immediately.
After escrow has closed (recorded) on your purchase, these items will not then
have any direct affect on your loan.
suddenly close, move, withdraw or deposit large amounts of cash into your
checking or savings account without the ability to ďsourceĒ the funds (i.e.;
determine where the funds came from). If it is absolutely necessary to transfer
funds, contact your loan officer.
□†† DONíT cash
in an IRA, stocks, annuities, savings bonds, etc. without checking with your
loan officer first.
□†† DONíT make
any new purchases, including cars or furnishings for the new house. An increase
in your credit card balances or a new credit account opening can affect the way
your application is viewed.
□†† DONíT sell
personal property, a car or other asset without checking with your loan
officer. Depending upon the asset, an appraisal may be required and copies of
sale and transfer may need to be documented.
□†† DONíT quit
your job unless you already have a new one in the ďsame employment fieldĒ. If
you MUST change your job position or employer, notify your loan officer
□†† DONíT go on
vacation or out of town as there are lots of papers and forms to be completed
that will require your signature(s).
□†† DONíT shop
for, lease or buy a vehicle or other large purchase. A new loan could affect
your qualification process.
co-sign or otherwise obligate yourself on a loan for someone else (i.e.;
children, relatives, friends, etc.)
□†† DONíT open
or apply for a new credit card. This includes store offers that provide a
discount for your purchase if you open an account.
□†† DONíT be
late with any mortgage, rent or credit payments. Continuing to pay every
obligation is critical.
ON THE OTHER HAND
□†† DO advise
your loan officer of any ďgift fundsĒ you may acquire. There is a procedure
required for receiving and depositing such funds.
□†† DO report
anything (good or bad) that you feel might impact your loan qualification. This
includes any raise or promotion.
□†† DO begin shopping
for your property insurance. You will not need evidence of insurance until your
loan is approved, but waiting until the last minute may delay the close of
escrow should there be any required inspections or repairs by the insurance
□†† DO notify
your landlord after you receive your final approval. After your loan officer
has pre-approved your loan file, you may want to notify your landlord that you
MAY be moving. Advise them that you will provide a required notice should you
actually be moving.
IF YOU ARE UNSURE OF
ANYTHING, CALL YOUR LOAN OFFICER!