Here is a list of the seven things home buyers should NOT do before applying for a loan:
- Don’t buy or lease an auto. The lender looks carefully at the debt-to-income ratio and a large payment such as a car lease or purchase can greatly impact those ratios and prevent the buyer from qualifying.
- Don’t move assets from one bank to another. These show up as new accounts and complicate the application process, as you must then disclose and document the source of funds for each new account. The lender can verify each account as it stands. You can consolidate them later.
- Don’t change jobs. A new job may involve a probation period, which must be satisfied before the income from that job can be considered for qualifying purposes.
- Don’t buy new furniture or major appliances for the “new house”. If the new purchase increases your debt load, it can disqualify you from the loan or deplete your funds to close.
- Don’t run a credit report on yourself. This will show up on your lender’s credit report as an inquiry and must be explained in writing.
- Don’t attempt to consolidate bills before speaking with your lender. The lender can advise you if this needs to be done.
- Don’t pack or ship information that may be needed for the loan application. Important paperwork such as W-2 forms, DD214 forms, divorce decrees and tax returns should not be sent with your household goods. Duplicate copies take weeks to obtain.
If you do any of these “don’ts”, call me… even if you have already been prequalified. I can help you re-qualify, if necessary, and advise you of your options.
Getting a mortgage today can be complex. New regulatory, verification and documentation requirements require knowledge and experience. Michael Lutz has been in the mortgage industry since 1992 and fully understands these complexities, and knows what investors and lenders are looking for to help prepare and guide any level of homebuyer through the process from start to finish. You can count on Michael to review your needs, suggest financing options, and take your application in person or over the phone. He will do whatever it takes to ensure that one of the biggest and most important purchases you’ll ever make will also be one of your easiest. Give him a call when you’re ready to get started:
Michael Lutz, Loan Officer
Sunbelt Lending Services
Fax: (856) 917-1970
NMLS # 1025518 | Florida License # LO22143
For informational purposes only. Your real estate professional is not a mortgage lender. Please contact your Loan Officer for information about mortgage products and your eligibility for home financing. Financing provided by PHH Home Loans, LLC d/b/a Sunbelt Lending Services. All rights reserved. Sunbelt Lending Services, 300 South Park Place Boulevard, Suite 150, Clearwater, FL 33759 NMLS # 4256 PHH Home Loans, LLC, One Mortgage Way, Mt. Laurel, NJ 08054. www.nmlsconsumeraccess.org