Here are some helpful tips of seemingly innocent mistakes borrowers make before and during the home purchase process. Our goal at FM Lending is to ensure a smooth and stress free experience from the pre-approval through to closing. From the moment you begin your pre-approval and shopping for your dream home, there are things that should be avoided to keep your loan approval intact.
Don’t Change Your Job
If you change jobs before or during the loan process, it can create problems in qualifying for a home loan, particularly if your new job is in a different line of work or at a lower rate of pay. During the loan process, it can also create time delays, as the new job will need to be verified.
Don’t Change Banks or Move Your Money Around.
Moving money to a new bank interferes with the verification process. It is best to leave your money where it is until your loan closes, unless otherwise recommended by your Loan Officer.
Don’t Deposit Cash.
Only deposit funds into your account that can be documented, showing the source such as pay checks or gift checks. Cash deposits can cause a file to be denied.
Don’t Make Any Major Purchases.
Many borrowers make the mistake of buying a new car or making another major purchase without realizing the impact it can have on their ability to buy a home. A new monthly payment can affect the amount you can qualify for and actually make it difficult to get your loan approved.
Don’t Close Credit Card Accounts.
If you close a credit card account, it can affect your ratio of debit to average credit, which has a 30% impact on your credit score. If you really want to close an account, do it after your close your mortgage loan.
Don’t Apply For New Credit of Any Kind.
If you receive invitations to apply for new lines of credit, do not apply during the mortgage process. If you do, that company will pull your credit and this will have an adverse effect on your credit score. Likewise, don’t establish new lines of credit for furniture, appliances, computers, etc.
Don’t Fail to Disclose Information.
Financial or credit surprises during the loan process can make it difficult for the lender to approve your loan. Disclosure to the loan officer up front allows time to work on potential problems.
About FM Lending
FM Lending Services is a full service mortgage banker specializing in residential purchase and refinance loans in North Carolina since 1992. FM Lending Services offers a wide range of mortgage products and is consistently awarded the highest rankings by the North Carolina Housing Finance Agency and USDA. We have built a strong reputation in the Carolina’s for service, on time closings and professionalism. We pride ourselves on serving the lending needs of real estate professionals and their clients and many of our originators consistently rank in the TOP 1% of Mortgage Originators in the country*. It’s our mission to create an extraordinary customer experience through the efforts of our knowledgeable and caring mortgage professionals where relationships are valued and the focus is on treating every client with white glove service. We’ll work closely with you throughout the financing process, helping provide valuable information so you can make informed decisions.
FM Lending Services (Prosperity Home Mortgage, LLC dba FM Lending Services), *Ranked by Loan Originator Magazine