Best Practices For Lender Approval
Say No to New Credit Cards
Opening a new line of credit can temporarily lower your credit score and delay or derail the closing.
Hang Onto Your Old Car
Adding a new car payment changes your debt-to-income ratio and can jeopardize how much, of even if, you qualify for a home loan.
Furnish A Home After You Own
Waiting to buy new appliances and furtniture until after you have the keys to your house safeguards your loan qualification and ensures there is money in the bank to pay final closing costs.
Don’t Switch Jobs
Steady employment history increases your chances for loan approval, while lender verification of a new job can put your closing date at risk.
Preserve Your Nest Egg
Withdrawing money from your savings account can be a red flag to lenders when they recheck your funds ahead of the closing.
Pay Your Bills In Time
Continuing to pay your bills and make a loan payments on time shows lenders you’re a responsible borrower, boosting your chances of approval.
Keep The Credit Cards You Have
Cancelling your credit cards shortens the length of credit history, which lenders review before approving a loan. It’s better to keep the card active, but unused, until after the closing.
Document Large Sums Of Money
If you can’t produce a cancelled check, pay stub, or gift letter to document and source a big deposit, lenders may assume you’ve received a loan elsewhere and deny your application.