Lending Hiccups by Karin Wertheim

You’ve found the home or property of your dreams-Congratulations! You’ve already secured the pre-qualification letter from your lender, so hopefully everything is smooth sailing to closing. Unfortunately, the loan is never a guarantee until it is funded. Here are a few mistakes to avoid that there are no hiccups in the loan process.

4 Biggest Mistakes in Home Loan Lending

Establishing new debt. For example, financing with a car loan or any other new loan. Doing this can shift your debt to income ratio (DTI) and disqualify you for the loan.
DO hold off on any big credit purchases until after you’ve moved in.

Having your credit run too many times during the process. Having your credit report run several times can deduct points from your score. If the lender requests a new credit report in the loan process, your new score could disqualify you.
DO Avoid applying for new credit cards while you are in the home searching and buying process. Since it is the law that lenders must pull a fresh credit report right before funding, give lenders some room to pull reports without affect to your score.

Jumping jobs – A lender has to have 30 days of paystubs with your new employer before the loan is able to be closed.
DO keep your job search open, but don’t give your notice until the loan closes.

Paying bills late in the last 12 months – if there is a late payment during the loan process, your final financing may not go through.
DO start planning to buy a home at least year ahead of time- review your budget and make spending adjustments if you need to so that your financial health is sound for lenders.

Silver Peaks wants to help you buy a great home in Teton Valley! Please contact us if you are interested in condos, single-family homes or buildable lots.

 

Karin Wertheim, Sales Associate Idaho and Wyoming

208-201-5151

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