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Tuesday, April 21, 2009

Loan Approved or Denied Can Depend On Following A few Rules

When applying for a mortgage for Long Beach Real Estate, What NOT TO DO During the Loan Process and while qualifying for a loan. Today's mortgage underwriting has undergone so many changes and getting final loan approval is hard enough in today’s Credit Crunch environment so, I would like to give you a few hints to make things go a little smoother toward loan approval and the final funding of your transaction.

Once you have submitted all your income and financial papers to your loan officer and your loan package has been sent to the lender for underwriting approval, there are a number of things you should avoid doing that could change your financial picture.

Remember, the lender is looking for stability and consistency. If you want the best interest rate, and a smooth closing, here are a few things to consider:
The lender wants to see what your source of down payment is.Your lender will most likely ask you to provide proof of your liquid assets. This includes bank statements for checking and savings accounts, verification of investments, and any other liquid assets.

Make sure your paper trail is easy to document, and don't move money from one account to another. So, while you are in escrow, keep a handy file to put all your deposit slips, pay-stubs, and bank statements into incase additional documentation is requested.Major purchases will count against you.

Perhaps you're thinking about buying new appliances for the new home. This is NOT the time to do it! Avoid making any major purchases on jewelry, appliances, furniture, vacations, or anything with a significant price tag.
Keep you money in the bank and keep your plastic in your wallet. Wait until escrow closes before you go shopping, it could jeopardize your loan approval.

Protect your Credit Profile and Fico Score while in escrow.
Every time your credit is pulled, your Fico score will take a hit. Open a new account, close an account, add to the balance of your credit cards in a significant way WILL impact your fico score and could cause your interest rate to go up or, worse yet, your loan approval to be rescinded! Stay the course and don’t change your credit profile.

Have Patience and Keep Your Goal of Homeownership in Mind
If you are getting the picture that your life may not be your own until AFER ESCROW closes, well, you are right. Remember, It is your future as a homeowner that you are protecting and these are just a few things to know that will help you stay our of trouble until your loan has actually funded. For more information on how to qualify for a home mortgage CLICK HERE.

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