The key to a smooth and straightforward home buying process on the lending side stems from a close trusting relationship between you and your lender. Your lender will ask you many questions along the way, and it’s in your best interest to answer all questions to the best of your ability. Your goal is to get approval, and the best interest rate available and your lender is there to help you get there. Here are 5 things NOT to say to your mortgage lender.
Lying to a mortgage lender can ruin your chances of approval. It’s also considered a felony to provide misleading information on a loan application. Instead of bending the truth, talk with your lender about concerns you have in certain areas of your finances and they will help set you on the right path. If you are worried about your credit score, talk with your lender and they can push you through to credit repair. Often times, lenders have handled a situation similar to yours in the past.
Check out my new credit cards
Opening new lines of credit before closing on a home does not help your approval process. In fact, it can delay and even terminate your loan due to drop in credit score and debt to income ratio. While it’s understandable to want new appliances for your home, wait until after you’ve closed on your home. If it cannot wait, consult your lender before making the decision to open any new line of credit.
Changing jobs annually is my specialty
Some of this you can’t control, but it you are leaving jobs because of sudden interests in different fields, it could impact your loan eligibility. Lenders like to see at least two years of stability at a job so they can count on you saving a portion of that steady income for your mortgage payment. If you are thinking about buying a home in the near future, consider staying at that job for a little bit longer.
I forgot to pay that bill again
Lenders are looking to see that you are consistently paying your bills. If you are mentioning that you’ve let a few bills slip here and there, your lender may question how likely it will be that you pay your mortgage on time. Even if you don’t mention these slip ups, they will show on up on your credit report. Set up auto-pay for the accounts that you can and make sure to be diligent about paying your bills on time.
What is a credit score?
Your lender is expecting that you understand and are consistently monitoring what your credit score is. If you don’t know what your credit score is, chances are you are not ready for a loan. Knowing your score and the reasons it became the score it are important to know and understand. This will help you make changes before you apply, increasing you chances of approval and a great interest rate.
The Fornerette Team at Guild Tacoma Branch is committed to providing their clients with the highest level of service. Our mission and passion is to work with home buyers to fulfill the dream of home ownership. We build lasting relationships that create value and stand the test of time.
Guild Mortgage Company is an Equal Housing Lender; CO NMLS 3274. Branch NMLS 273749. Michael Fornerette NMLS 121193. The information provided herein has been prepared by a third party and has been distributed for education purposes only. The positions, strategies or opinions of the author do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.