If you are planning to buy a home within the next few months, there are specific mistakes that you must avoid as they can hinder your ability to get a loan. Below are Waltham MA purchasing mistakes to avoid.
Waltham MA Purchasing Mistakes To Avoid
Lenders evaluate your income compared to your debt. Making large purchases on either your credit cards or on new loans can significantly change that percentage. Generally, the more debt you incur, the less you can qualify for on a home loan. This is especially critical after you have identified a property and have initiated the loan process. Mortgage companies may re-run your credit report immediately before closing to ensure that your qualification has not significantly changed. If you obtained additional debts, this can result in you not being able to purchase the home.
As part of the loan process, mortgage companies review your past and present employment to analyze your ability to make payments. A solid history in earnings is very important. Shifting employment before or during the approval step can create problems with qualifying for a loan, particularly if the new job is in a new line of work or at a lower rate of pay. During the mortgage process, it can also lead to delays while the new employment is confirmed.
Loan underwriters normally evaluate your bank account statements over the past few months. Transferring funds to a different account can create issues. It is advisable to keep money in the existing account until after the loan closes.
Most types of loans mandate that you use a specific percentage of your own money for the down payment and/or closing fees. Mortgage companies confirm this by looking through bank statements. Any cash transactions are closely scrutinized. You may be asked to verify the source of those deposits.
Shutting Down Accounts
While getting ready to purchase a home, you may try to pay down credit cards. Prior to starting this, consider consulting with a loan consultant on whether it is necessary based on your financial figures. If you do pay off bills, do not terminate the accounts as this may lower your credit score. It may be best to leave the accounts up without a balance.
Additional Guidance on Waltham MA Purchasing Mistakes To Avoid
The above Waltham MA purchasing mistakes to avoid is just a few examples. As a local real estate broker, I can provide you with a list of local lenders in the Waltham MA area. You may reach me, Bradford Pratt, at REMAX on the Charles via phone at 781-316-5760 or email at email@example.com.