Plan your purchase or refinance. Call us for guidance before you move money, payoff debt or make any significant purchase.
Call us prior to filing tax returns. Many times people claim unreimbursed expenses to reduce taxes which also reduces income needed to qualify for a loan.
Pay your bills on time. It is critical that you do not become late on your credit obligations with any of your bills or rent during the loan process. In fact, you will need to have 12 months of no late payments prior to submitting the loan.
DO NOT take on any new debt. You could potentially change your debt ratio which could disqualify you for the loan.
DO NOT co-sign for anyone else’s loan. It will count against your debt ratio.
DO NOT deposit or move cash into your bank accounts. It cannot be used and will need to be explained!
DO NOT allow anyone to pull your credit. Credit inquiries can lower your FICO scores and cause concern to the lender. A lower FICO score could potentially disqualify you for a mortgage loan.
DO NOT cause overdrafts on your bank accounts or spend the funds that you need to close your loan. Maintaining adequate balances in your bank accounts at all times is mandatory to avoid overdrafts. Lenders could view an overdraft in your account the same as a late payment on a credit obligation.
DO NOT pay any collections or contact the creditors attempting to collect the debt unless advised to do so by your Mortgage Broker. Sometimes contacting someone regarding an old collection account or making a payment on that account can actually have a negative effect on your credit score.
DO NOT buy anything with a deferred payment. Any purchase with a deferred payment will need to be counted against your debt ratio regardless if payment is due in 12 months.
DO NOT give notice to your landlord of your intent to move until you have been fully approved and notified by your mortgage representative.
AND LASTLY, please don’t conceal information from us because that is extremely counter productive for reaching your goal. It is almost impossible to fool an underwriter. They check everything so why hide problems when it is better to own them and solve them!
WHEN IN DOUBT, call Patti LeVan at (941) 201-9111.