The home loan process can be a success if you are well prepared and informed. Before you begin your home search, it is a good idea to check your credit for any inaccurate information or disputed accounts that may affect the approval process.
Here are 7 important rules to follow during the mortgage loan process:
1 – Credit inquiries can lower your credit score. Do not allow anyone to run your credit once you have started the mortgage process.
2 – Open credit disputes could delay or even prevent your loan from getting approved. Do not dispute any items on your credit report during the mortgage loan process.
3 – Large bank deposits—especially cash deposits—may raise a red flag. Speak with your mortgage broker before making any large deposits into your bank account.
4 – Similar to item 3, do not make any large withdrawals without consulting with your mortgage broker. Your loan approval is contingent not only upon having enough money for closing, but also having sufficient reserves left over. Making unnecessary withdrawals during the loan process could put your loan in jeopardy.
5 – Buying large ticket items, such as furniture or a new car should be avoided. In general, you should avoid incurring ANY new debt during the loan process. Any new liabilities will have to be disclosed and they could affect your loan approval.
6 – Speak with your mortgage broker if you are thinking about making changes in employment. A change in employment may jeopardize the approval of your loan.
7 – Most importantly, continue paying all your bills, rent or mortgage on time.
Mortgage tips courtesy of our friend Jeff Lieberman of Expert Mortgage Group.