5 Major Killers of Home Loans

[vc_row][vc_column][vc_column_text]

There is no better feeling for me than to help a family into a new home. From that first phone call to the final signature at the closing table I hope to make the experience as smooth as possible. The last thing I want to happen is anything that would put a loan in jeopardy. Unfortunately, there are 5 things that if done can put a real kink in getting a loan.

[/vc_column_text][vc_toggle title=”1. Changing Your Job” el_id=”1446750033129-f25af91a-67d8″]Do Not Change Your Job. Most loan programs require 2 years of employment in the same line of work to use money received from overtime, bonuses, and commissions. The income you received from that job can then be used to approve you for a loan. The kink happens for example when a person goes from being a school teacher to wedding planner. Two very different lines of work.
[/vc_toggle][vc_toggle title=”2. Making Major Purchases. ” el_id=”1446750061028-69b0b310-6df3″]Do Not Make Major Purchases. Getting loan for a new car, boat, 80 inch flat screen TV, or jewelry etc. will count against your purchasing power. Adding a major payment to your monthly bills could make it so your debt-to-income ratios are too high thus disqualifying you from the loan. Also, making a major purchase on an existing credit card can hurt twice by changing debt-to-income ratios and dropping your credit score.[/vc_toggle][vc_toggle title=”3. Depositing Cash into Your Bank Account. ” el_id=”1446750096145-8f9157d4-dc97″]Do Not deposit any large sums of cash or non-work related checks into your bank accounts. Any cash or non-work related check above $100 can cause trouble. By law, all money that is used for purchasing a home must be sourced and seasoned. Sourced meaning, a paper trail of where the money came from or seasoned meaning the money has been in the account for a period of time (normally 60 days).
[/vc_toggle][vc_toggle title=”4. Excessively Pulling Credit.” el_id=”1446750158280-f8c5dbba-8a5c”]Do Not Excessively Pull Your Credit This can drop your credit scores drastically. The more time someone checks your credit the lower it may go. The lender is also required by the government to explain every credit pull in the last 90 days. This is to ensure no new debt has been established that should be factored into your home loan.
[/vc_toggle][vc_toggle title=”5. Delaying Supplying Your Lender with Requested Documentation.” el_id=”1446750192867-8ad0a3b2-28ac”]Don’t delay supplying your lender with requested documentation. Sometimes you may be asked for things that seem unreasonable. But it is important to understand  government guidelines set what is required. By law, there is no wiggle room with some documentation. This is why you may provide what you think is acceptable only to be asked for something different. Lenders only want to make sure your mortgage loan is in compliance with all government guidelines so as to avoid any future issues.

.[/vc_toggle][vc_column_text]

This basic advice can greatly reduce the chances of things going wrong with your mortgage loan. It is important to remember, this is your home we are talking about. Don’t let some silly paperwork stand between you and your next home. If you have any questions please feel free to give us a call. Any one of Loan officer here at Village Mortgage would love to help.

[/vc_column_text][vc_separator][vc_column_text]File Under: Home Loan Process, FAQ, Home Loans Utah[/vc_column_text][/vc_column][/vc_row]