Things To Avoid After Applying For A Loan
After applying for a loan to buy a property, remember these points. Be careful while making big purchases when moving in and decorating. Here are some things to avoid after applying for a loan.
Don't deposit much cash.
Cash isn't easily traceable for lenders. Before depositing funds, review suitable documentation with your loan officer.
Avoid big purchases.
Not only home purchases can affect your financing. Lenders may flag large purchases. New debt increases debt-to-income ratios (how much debt you have compared to your monthly income). Higher ratios make loans riskier. Therefore, borrowers may not qualify. Refrain from buying furniture or appliances.
Don't co-sign loans.
Co-signing a loan makes you responsible for its success and repayment, with higher debt-to-income ratios. Your lender will count the payments against you even if you agree not to pay.
Don't change bank accounts.
Lenders must track your assets. Account consistency makes this process easy. Consult your loan officer before transferring money.
No account closures.
Fewer financing options make buyers less risky and more likely to get approved. Nope. Length and depth of credit history (not just payment history) and credit usage as a percentage of available credit affect your score. Closing accounts lowers your score in both categories.
Consult a Professional.
Be open with your lender about any changes. Blips in income, assets, or credit should be reviewed and implemented to assure approval. Share with your lender any job or employment changes. Before doing anything financial, explaining your objectives to your loan officer is wise.
Before you make substantial purchases, relocate your money, or make major life changes, consult your lender, who can explain how your financial decisions may affect your house loan.