Tips on Applying for a Home Loan, Part II
Take advantage of today’s low interest rates and buy your dream home today!! In last week’s post, we dispelled the myth that getting a loan will be difficult. You might know that a good credit score is a necessity, but there are things you may have overlooked that will better your chances of getting a loan approved. The following is Part II of our list of things you DON’T want to do when applying for a loan (see last week’s post for the first 5 dont’s):
- Don’t ignore errors on a credit report. Instead, correct them as quickly as possible and then check to make sure they’ve been removed a couple months later.
- Don’t make payments late on credit card bills. Credit scores drop with every late or missed payment.
- Don’t forget to incorporate if you’re self-employed. Some banks won’t touch self-employed buyers.
- Don’t wait to receive funds from a family member if the funds are a gift for your down payment. If funds appear in your bank account within two months of your loan application, you may have to verify where the money came from. Borrowing for a down payment will be considered a debt and will affect your debt to income ratio and your credit score .
- Don’t forget to submit ALL of your paperwork to your lender immediately . Missing documents create delays in doing appraisals and getting loan approval.
If you’ve been thinking about buying a home, now may be the very best time to do so. Let’s talk!
