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How To Have a Smooth Move

These are five potential loan pitfalls buyers may encounter.

Owning a new home is a dream for so many people. The whole process is exciting, but there are a few things that can throw a bucket of cold water on your homeownership dreams. Today we’ll talk about five of those potential issues so you can have a smooth transaction by avoiding them:

1. Employment changes. When you have a conversation with a lender about a loan, they look at all of your income streams. If you have any kind of job changes coming up, tell the lender. If they find out later without warning, it sends up huge red flags to lenders, and you’re less likely to get approved.

2. Applying for additional credit. Don’t open a new credit line. It can affect your debt-to-income ratio and actually drop your credit score.

3. Missing payments on current debts. If you have payments that you’re making, pay those on time. Missing a payment can drop your credit score.

4. Undisclosed debt. Lenders do diligent research and will find any undisclosed debt. Be upfront with them about any debt.

5. Depositing large amounts of cash without warning. If a friend or family member gives you money, tell the lender. If they check your accounts and they can’t figure out where this money comes from, they may assume that you took out another loan. That would change your debt-to-income ratio and affect your current loan.

If you have dreams of buying a home this year or you have any questions, don’t hesitate to call or email us. We look forward to hearing from you.

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