Are you a first time home buyer?
When you are ready to buy your home a lender will basically evaluate your overall financial picture as well as other financial factors to see if you qualify for a mortgage. Here are some tips to help you get your loan.
- Do not quit your job while you are in the process of getting a mortgage, nor change jobs or decide that this is a great time to become self employed.
- Don’t go out and spend money on huge ticket items like a new car that you would need financing for. If you do this it will increase your debt to income ratio and this then decreases your chances of getting approved for your loan.
- Do not go on a shopping spree for new furniture to decorate your new home before you close on your home. You maybe tempted if you found the perfect furniture but please hold off on buying any major purchase until after the closing.
- Do not ….do not lie on your loan application. Do not omit any debts, if you do this it is considered to be fraud to lie on your loan application and you will be denied the loan.
- Don’t use your credit cards excessively during the process. And please do not forget to pay your bill. Any changes to your spending habits may just prevent you from getting your loan.
- Put aside money for your closing costs. You can contact the closing company to find out what your closing costs will be.
- Do not go out and co-sign loans for anyone. This means that you are assuming debt, even if it is someone else that is making the payments. This will also increase your debt to income ratio.
- Do not make large deposits into your bank account. You may have had an estate sale to get rid of things in your home before you move and made a good chunk of change. Talk to your lender before you deposit that money into your account or any large deposits while you are in the process of getting a loan.
- Do not change bank accounts during the process of getting a loan. The lenders are looking at your financial stability.