Top Eight Things NOT to Do

During Your Loan Process

 

 

1)   Quit your job. Lenders will verify your employment a couple of days prior to funding your loan.

 

2)   Buy a new car or make any other large purchases. The new payment may make it difficult for you to qualify for your mortgage.

 

3)   Stop making payments on your mortgage, credit cards, etc. Falling behind on your current debt can cause your application to be denied.

 

4)   Put your home on the market. Lenders will not lend on a home that is listed for sale.

 

5)   Begin improvements on your home. A home that is currently under construction may be difficult to appraise at its true value.

 

6)   Draw off your home equity line. Your loan approval is based on balances at the time of application. Drawing money on your credit line can affect your approval.

 

7)   File for bankruptcy. Most programs require that you be outside of bankruptcy for at least two years before you can qualify for a loan.

 

8)   Take advice from your mechanic on mortgage programs and rates. Would you take advice from your loan officer on what is wrong with your car? When you need expert advice on mortgage rates and programs, ask your mortgage specialist.