Looks like I am going to give you a two for one in blog posts this week. I know I did one yesterday, but since I have fallen behind, I have to make up the difference. So with that said welcome to my blog. I want to inform you about something that can absolutely destroy your chances of getting a loan, even if your loan has already been approved but you haven’t closed yet. Most people think that once their loan is CTC (mortgage jargon for Clear-to-Close) they are open to do whatever they want. Wrong! Most knowledgable lenders will tell you up front, do not make any purchases, do not apply for any new credit, do not make any late payments and make sure everything that you have disclosed to us remains the same or gets better. Nothing, and I mean nothing will make us give you the Bernie Sanders stink eye faster than seeing a new debt show up on the credit report. Now let me tell you why.
When we take a look at your overall credit profile such as income, assets, credit history, job history, debt ratios, ect. We have to make sure it fits “inside the box,” because let’s face it, this isn’t the mortgage industry of 10+ years ago. We have to make sure that everything is well documented. Now once we do that and we issue a pre-approval or pre-qualification, you are all set to go find your new home. In the meantime, make sure you do the following:
- Continue to pay your bills on-time
- Do not deposit cash in the bank
- Do not charge up your credit cards
- Do not apply for new credit or request credit line increases
- Do not spend your down payment on anything besides your down payment
- If you are unsure about anything, contact your mortgage expert
These may sound like simple rules to follow, but you would be surprised. Doing any of these can seriously impact your loan approval and could prevent you from purchasing your brand new home. The reason being is that it can negatively impact your credit score and can drive up your DTI (mortgage jargon for debt-to-income) ratios which could prevent you from getting the loan. So while you’re out looking at homes and when you get under contract, make sure you have a good talk with your mortgage expert and they can help you a guide you throughout the way. Consistency is the key. Maintain your current credit and financial profile and your loan should get approved with little to no problems.
So you want to stay up to date on all of this information? Want access to interest rate trends, home searches, calculators and a bunch of other useful stuff? Then you need to download my free mortgage app. It is 100% free and you have access to all of my info, including this amazing blog, 24/7. All you have to do is click here and it will direct you to the download link. C’mon, you didn’t think I’d give you an awesome blog and not ask you to do me a solid now did you? As always, thank you for viewing my blog. Check out my app and your life will become 10,000% better (well maybe not, but it’s a free app, so it can’t hurt right?).
Be on the lookout next week for some new info and a new blog. Leave me your feedback below if there is anything else you want me to focus on for future blogs.