It should be no surprise that the loan process is a process, and it’s not over until your loan closes. Until then, income, liabilities, and assets will continue to remain under a close eye to make sure they fit within the guidelines established for the loan you're looking to get. We're here to offer you Kansas City Kansas Home Loan Advice! Every home loan process is different but here are some common mistakes to avoid:
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No Late Payments! Nothing will drag down your credit scores faster than recent late payments. If your new home is being built, you need to be extra careful over these 3-6 months to avoid any late payments.
- No New Credit! Lenders will check your credit report just before funding the loan to verify that you have not added any new monthly payments to your overall debt picture. Car payments, increased credit card balances, etc. can increase your debt ratio beyond the limits allowed by lender.
- Save your Money. While avoiding an increase to your monthly debt payment is important, it’s also a bad idea to use your savings to pay cash for significant items as well. A lot of loans programs require the borrowers to have a certain amount of reserves after closing.
- No Job Changes! If at all possible, wait until you’ve closed. Lenders verify employment within a day or so of funding the loan and will almost always cancel the deal if your employment has changed. Switching from one employer to another with the same job description may not guarantee a problem, but stability is the key here.
- Don't co-sign!Many borrowers believe there is no harm in co-signing thinking that their son or daughter or whoever – is making the payment, so it doesn’t matter. If your name is attached to a new debt, it will be treated as yours and factored into your debt ratio.
If you need any other Kansas City Kansas Home Loan Advice - please give us a a call at (816)268-4025 or check us out online at KC Loan Tips.or get preapproved here!
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