1. Don't buy or lease an automobile. The lender look carefully at the
debt-to- income ratio (mentioned in the March 2005 newsletter) and
a large payment such as a car lease or purchase can greatly impact
those ratios and prevent the buyer from qualifying.
2. Don't move assets from one bank to another. These show up as new accounts and complicate the application process, as you much then disclose and document the source of funds for each new account. The lender can verify each account as it stands. You can consolidate them later.
3. Don't' change jobs. A new job may involve a probation period, which must be satisfied before the income from that job can be considered for qualifying purposes.
4. Don't buy new furniture or major appliances for the "new house". If the new purchase increases your debt load, it can disqualify you from the loan or deplete your funds to close.
5. Don't run a credit report on yourself. This will show up on your lender's credit report as an inquiry and must be explained in writing.
6. Don't attempt to consolidate bills before speaking with your lender. The lender can advise you if this needs to be done.
7. Don't pack or ship information that may be needed for the loan application. Important paperwork such as W-2 forms, DD 214 forms, divorce decrees and tax returns should not be sent with your household goods. Duplicate copies could take weeks to obtain.
Specializing in Grosse Pointe, St. Clair Shores
Harrison and Chesterfield Twp, Harper Woods