Tips For A Smooth Loan Approval
- 21 February, 2020
After helping thousands of families get into their homes, we’ve got the process figured out. Here is a list of common do’s and don’ts that will help make sure your loan avoids delays, processes as smooth as possible and gets you into your dream home.
The do's for a smooth loan approval:
Inform your loan officer of any changes in employment, income or assets.
Let your loan officer know if you get a promotion, lose your job or change the number of weekly hours you work. Your income is an important qualification factor and your loan officer will be able to let you know how this impacts your loan.
Continue living at your current residence
Don’t pick up and move overnight! If your lease is going to be over soon, discuss with your loan officer what your next step should be. They can help you evaluate the situation and make an informed decision.
Continue making current rent/mortgage payments
Missing a rent or mortgage payment can impact your loan eligibility. If you don’t think you are going to be able to make one of these monthly payments, speak with your loan officer. They will be able to educate you on what the repercussions may be.
Inform your loan officer of any changes in credit history
If you experience a change in credit history, either positive or negative, keep your loan officer in the loop. This can make a difference on both your loan eligibility and the interest rate (which affects part of your monthly mortgage payment).
The don’ts for a smooth loan approval:
Make a major purchase
Wait until you are in your new home before purchasing a new couch, bed or other furniture. Large purchases can significantly impact your loan. This is one of the most common ways in which people derail their loan before the closing table.
Apply for any new lines of credit
It can be tempting to pick up a new credit card to help until you are in your new home, but applying for new lines of credit is a surefire way to cause hiccups in your loan process.
Change bank accounts or transfer balances from one account to another
Transferring your balance from one bank account to another will cause underwriters to ask for more documentation. This is more trouble than it’s worth. If you need to change bank accounts or transfer large amounts of money, speak with your loan officer first.
Deposit large amounts of cash without proper documentation
Whether you had a huge garage sale, sold an old vehicle or got a gift of cash, make sure to document it. Large amounts of cash with no “paper trail” are usually indicators of fraud and will cause a delay with your loan processing.
Have a question about the loan process? Click here and speak with an experienced loan officer today.
