Tips for a Simple Loan Approval
Whether you’re a first-time buyer or a seasoned real estate veteran, waiting on the approval of your loan is often the most nerve-wracking and overwhelming part of buying a new home. Although essential for the majority of homebuyers, the loan approval process can be cumbersome for not only the buyer, but the lender as well. There are a number of seemingly insignificant mistakes a borrower can make during this time that has the potential to cause a delay- or even denial of their home loan.
Our loan experts have compiled a list of the most common DO’s and DON’Ts borrowers should be mindful of when encountering various situations until you’ve closed on your home loan. Follow these tips to avoid potential road blocks on your path to homeownership.
- DO continue paying your rent or mortgage (on time)
- DO keep all paid accounts current
- DON’T apply for or open any new credit accounts
- DON’T close or pay off any credit cards (unless your LO advises you to do so)
- DON’T change employers or insurance companies
- DON’T join a new gym, or open new accounts with other service providers (such as a cell phone, etc)
- DON’T transfer balances between bank accounts
- DON’T consolidate debt
- DON’T pay off collections requests without speaking to your loan officer
- DO contact your loan officer if you’re unsure how something can affect your loan approval
Believe it or not, following these simple tips can not only make or break your homebuying experience, but it can also either save or cost you valuable time and money. If you aren’t completely sure if something you’re planning to do will help or hurt the status of your loan approval, you should always contact your loan officer to advise before you act.
Not sure where to start? Find the best loan officer in your area here.