Tuesday, March 8, 2016

5 Ways to Destroy a Home Loan Approval

When buying a home, you don't want to do the wrong things.  There are 5 key things that buyers should NEVER do until after the close of escrow:

1. Buy any Large Items (such as cars, appliances, computers, TV's, etc)  that require a credit check or a withdrawal from your bank account.   Credit checks can actually lower your credit score and a
drop in your verified funds can result in a loan denial.

2. Change Your Marital Status.   This could impact how you hold the title.

3.  Change Jobs.  Your loan may be denied due to a job change.   Lender may re-verify your credit and employment at the last minute.

4.  Switch Banks or Move Your Money to Another Institiution.  This can affect your loan approval.

5.  Paying off Existing Accounts unless your lender requests it.  If timely payments are made and kept below 50%, certain long standing revolving credit accounts can have a positive affect on your credit.  However, if your lender tells you to pay it off, follow their direction.

For more buyer tips, see Selecting the Best Home Buyer Representative and Search for Homes on Your Phone.

Virginia Hall
Keller Williams Realty