Applying for a mortgage loan? Here are the top five things to avoid as advised by First American Title Insurance Company to ensure your loan is approved.
- Don’t change your marital status. How you hold title is affected by your marital status. Be sure to make both your lender and the title company aware of any changes in your marital status so that documents can be prepared correctly.
- Don’t change jobs. A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don’t think you’re safe because you’ve received approval earlier in the process. The lender may call your employer to re-verify your employment just prior to funding the loan.
- Don’t switch banks or move your money to another institution. After the lender has verified your funds at one or more institutions, the money should remain there until it is needed for the purchase.
- Don’t pay off existing accounts unless your lender requests it. If your loan officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes.
- Don’t make large purchases. A major purchase that requires a withdrawal from your verified funds or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute. So delay the purchase until after your loan has closed.
Have questions about buying a home? Set up a free consultation with Priority Law.
This article was originally published in the Lowell Sun and is for informational purposes only and not to be relied on as legal advice, in any manner.