What NOT to Do When Applying for a Loan
The following is a list of five things a homebuyer should steer clear of when seeking financing for a home. Know these five don’ts and save yourself unnecessary stress down the road.
• Don’t buy or lease a vehicle
Lenders look carefully at your debt-to-income ratio. A large payment such as a car lease or purchase can greatly impact those ratios and prevent you from qualifying for a home loan.
• Don’t move assets from one bank to another
These transfers show up as new deposits and complicate the application process. You can wait to consolidate your accounts later if needed.
• Don’t change jobs
A new job may involve a probation period, which must be satisfied before income from a new job can be considered for qualifying purposes.
• Don’t buy new furniture or major appliances for your new home
If the purchases increase the amount of debt you are responsible for on a monthly basis, there is a possibility this may disqualify you from getting a loan.
• Don’t attempt to consolidate bills before speaking with a lender
Your lender can advise you if this needs to be done.
