Things to avoid when applying for a loan
There are all kinds of information that you will need to supply to a lender when applying for a loan. This information helps them determine whether you truly qualify or not. Additionally, there are some things you can do on your own to help ensure that the whole process remains glitch free.
Do not change jobs if you can avoid it. Changing jobs before or during the loan process can create problems when qualifying for a loan, especially if the job is in a different line of work, or results in a decrease in pay.
Do not switch banks or move money around - Lenders need to verify your available funds. If you move money around, it becomes difficult to verify the funds, so leave everything as is until the loan is closed.
Do not pay off bills- These seems to go contrary to common sense. Of course you should pay your regular bills to avoid other credit issues. If you are carrying balances however, this is the category we are talking about. Your loan officer will advise you if it is necessary to pay off bills to help you qualify. Additionally, the lender may be able to advise you regarding how to pay off the bills so that there is adequate proof of the payments.
Do not make any major purchases- Large purchases can have a major impact on qualification. If you add a payment or increas a payment, it will decrease your qualification amount. Hold off on major purchases such as cars, boats, or furniture until the loan is completed.
We hope that this information is helpful. As always, if you are seeking a loan, you should get advise from a loan professional. We of course will be happy to answer any real estate related questions for you as well. If you are expecting to buy or sell property in the Phoenix and Scottsdale metro area, please allow us to assist you.
Adam Tarr, ABR, e-Pro
Sharon Kotula, ABR
RE/MAX Excalibur
Scottsdale, AZ
Your Phoenix Area Real Estate Source
480-483-3333
info@WeAreAZRealEstate.com