Five Ways to Horrify a Loan Officer
Just kidding, there’s nothing you can do to horrify us, but lending can get scary. Keep our staff fright-free by avoiding these pitfalls.
Be wise to past credit mischief and get a copy of your credit report
We all make mistakes. And, believe it or not, lenders can be forgiving of previous credit problems. It’s important to discuss any prior financial issues with your loan officer before you submit your application. Upfront knowledge may offer solutions instead of processing delays and application denial. If you’re unaware of what your credit report contains, click here for a free copy. After all, you can’t correct a problem if you don’t know it exists.
Spending may come back to haunt you
We know you’re excited and want to make big purchases in connection with your new home. It’s also tempting to take advantage of low interest credit card offers for appliances, furniture, and more. However, that may significantly change your debt-to-income ratio. If your ratio increases and underwriters feel you can’t afford the home, the banker won’t lend you money. Yikes!
Beware of changing jobs
If possible, don’t make a career move during the time between your mortgage application and the closing date. Even if it’s a better job for more money, still try to wait until after the closing. Length of present employment is important on a loan application, and underwriters are partial to stability. At the very least, changing jobs initiates more paperwork that may lead to closing delays. So, keep your loan officer in the loop if you begin a new career adventure.
Don’t make moving day turn into fright night
Closing dates can change, so don’t put everything on a knife’s edge when it comes to moving. Unless you have no choice, it’s a bad idea to schedule your closing date the day before you’re supposed to move out of your current residence. Go ahead and pack your clothes and dishes, but you may want to save the U-Haul until after the paperwork is signed.
Don’t let emotions turn you into a monster
Keep your cool during the loan process, especially during and after an inspection. No home is perfect, especially older homes. It isn’t unusual for new owners to take care of some repairs themselves, so don’t let the seller’s refusal to do a small repair kill a deal on a home you love. Then again, don’t be so blinded that you’ll buy no matter what needs to be done. Decide what repairs you can sensibly tackle and stick with the decision.
In short, do nothing that negatively affects your ability to qualify for your loan or requires a new round of paperwork. Of course, we will help you through challenges that come up during the application or loan process. If a past financial or mortgage experience is haunting you, contact one of our fearless loan officers for advice specific to your situation.