You just put in a mortgage application for a new Ventura CA Home! Congrats! Although you might know without a shadow of a doubt that you will get approved, your financial diligence is not over! The lender will be tracking your assets throughout the process. Any changes can therefore have a negative impact on your qualification for the loan. Here are the main financial rules to follow while you are going through the mortgage application process!
- Stay At The Same Bank: Remember, lenders need to source and track assets. To make sure that your lender can easily source and track your assets, you should keep the same bank account(s) that you listed on your application. Avoid closing your account or opening a new one at a different bank.
- Keep All Credit Accounts Open: Closing credit accounts will change your credit history (which goes beyond payment history to look at length and depth of credit) as well as the ratio of your credit usage to the percentage of available credit. This will have a negative impact on your score.
- Don’t Open New Credit: Stay on track for approval and keep your interest rates lower by not opening any new lines of credit, including auto loans or additional credit cards.
- Avoid Cash Deposits: It is important that your deposits are traceable and cash is not. Ask your lender the best way to document transactions before depositing cash into your bank account.
- Maintain Your Job & Current Salary: Your annual income and its source are important factors in your application. Avoid any changes in your employment.
- Do Not Purchase Other Large Items: This is one of the more common mistakes. Stay on track to qualify to avoid making any additional large purchases (ie automobiles, furniture, electronics, etc.) during this time.
- Don’t Become A Co-Signer: Although you might not be the one making the payment, the payment will be counted against you if you co-sign on a loan. You might want to help out your friend or loved one but hold off doing so while you are looking to purchase a home.
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