Things that can cause your Approved mortgage to be DENIED
Even after you approval for a mortgage the following things can cause it to be denied up until the day of closing. The lenders will recheck your credit and your income during approval process and again before your closing date. So Until you close on the home and you are in it please DON'T...........
- Don't buy or lease an auto. Lenders look carefully at your debt-to-income ratio. A large payment such as a car lease or purchase can greatly impact those ratios and prevent you from qualifying for a home loan.
- Don't move assets from one bank account to another. These transfers show up as new deposits and complicate the application process, as you must then disclose and document the source of funds for each new account. The lender can verify each account as it currently exists. You can consolidate your accounts later if you need to.
- Don't change jobs. A new job may involve a probation period, which must be satisfied before income from the new job can be considered for qualifying purposes.
- Don't buy new furniture or major appliances for your new home. If the new purchases increase the amount of debt you are responsible for on a monthly basis, there is the possibility this may disqualify you from getting the loan, or cut down on the available funds you need to meet closing costs.
- Don't attempt to consolidate bills before speaking with your lender. The lender can advise you if this needs to be done.
- Don't pack or ship information needed for the loan application. Important paperwork such as W-2 forms, divorce decrees, and tax returns should not be sent with your household goods. Duplicate copies take weeks to obtain, and could stall the closing date on your transaction.
- Don't apply for any credit cards!! This will affect your credit score and could change your loan to value ratios and prevent you from qualifying for a home loan.
- Don’t dispute anything on your credit prior to your loan application. This will stop the process and subsequently your loan will no longer be approved. Any deposit exceeding $100 that is not a payroll deposit will need to be explained. Keep copies of checks and deposit slips and make note of where the source of the deposits came from. If for any reason you have locked your credit because of a fraud or identity issue, make sure you unlock the 3 credit bureaus so that your loan can be processed.
- Do NOT write your Earnest Money Deposit from an Account that you did NOT disclose to us.
- Do NOT take cash advances from your Credit cards and then deposit that into your bank account as funds to close.
- Do NOT sell or pay off your mortgage. Make a minimum of 8 payments on the mortgage before you pay it off
These things can cause your loan to be denied up until the day you close and are in your home.
Published by Sheila Allaire- Exit King Realty 941-928-5094
tips from Gulfside Mortgage Services 888-960-6850
I love working with Gulfside.
Thank you Gulfside for providing these tips and helping families have a home to call their own.
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