Avoid
Changes to Your Financial Profile
During the Loan Process
 Once
your loan package has been sent to the lender, there are a number of
things you should avoid doing that will change your financial
picture. Remember, the lender is looking for stability and
consistency. If you want the best interest rate, keep that in mind.
Here are a few things to consider:
The lender is looking to see what your source of down payment is.
Your lender will most likely ask you to provide proof of your liquid
assets. This includes bank statements for checking and savings
accounts, verification of investments, and any other liquid assets.
Some of the things they ask for may seem trivial, but keep in mind,
if you are planning a move to a new home, it's important to have all
documentation readily available. If the lender asks for cancelled
checks or deposit receipts to meet certain conditions, you want to
be able to find these things quickly to avoid delaying the closing
of your loan. Make sure your paper trail is easy to document, and
don't move money from one account to another.
Major purchases tip the scales against your favor.
Avoid making any major purchases. You might be thinking about
purchasing new appliances for the new home. This is not the time to
do it. Avoid making any major purchases on jewelry, appliances,
furniture, vacations, or anything with a significant price tag.
Buying or leasing a car can make a negative impact on the way the
lender views your financial status. This is a big ticket item that
dramatically affects your debt-to-income ratio. You may feel you
have room in your budget to purchase a new car, and think this is a
worthy investment if you are looking for a home that will mean a
longer commute for you on a daily basis. But by tacking a car
payment onto your existing debt, you reduce the amount that you will
qualify for in a home loan. A $400 a month car payment can reduce
your approved loan limit by as much as $50,000. Think about doing
this after your loan is approved if you really need it.
If you have to change jobs, you may be asked to document why this
change occurred.
If you are changing jobs to increase your income, that's a
no-brainer for the lender. If you have an erratic work history to
start with, another job change may make it look worse for you.
If you are an hourly wage employee, most likely a job change will
have no effect on your ability to qualify for a loan. If you have a
track record of a consistent amount of overtime or consistent
bonuses over the last two years, the lender views this favorably. If
you change jobs, there is no way of knowing if the new employer will
pay overtime. Many do not! If you work on a salary + commission or
straight commission basis, it has a dramatic effect on your
stability. If you are considering starting your own business, again,
this is something to consider after your loan is funded.
Call me directly for a free consultation.
For more information call Burke Lending / Burke Mortgage.
 Call Today!
(860) 649-LEND (5363)
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