Avoid Disqualification For Mortgage

For new homebuyers the common mistake is buying up things to fill the homes. In doing so they will not found any difficulties as the lender will provide them enough money whereas the seller has nothing to refuse the deal. But some hurdles are still there invisible to the naked eye and should be overcome before you make some decision. Things which you need to avoid during the process of home buying to ensure your transaction will go smoothly are:-a. It is always tempting for buying new items to make your new home a comfortable one. Major purchases including electronic equipment, jewelry, cars, or furniture must be avoided until you finish your home and all the transactions. Financing these stuffs when you are already paying up transactions for your home could jeopardize your credit worthiness no matter whether you use your own credit card or a store credit card. Using cash to buy these products also have some impact on approval of your mortgage where banks take into consideration of the cash reserve of the borrower. b. The mortgage process needs a permanent job or at least the client must be working for last three years. Lenders often want to see about the job consistency of the client. Frequent change of jobs might not affect the qualification for a mortgage loan especially when it is for making more money but surely raise some concerns among the lender.c. For mortgage process the lender needs bank statements of the client for about the last two or three years in terms of checking accounts, money market funds, savings accounts and other liquid assets. They go thoroughly to avoid any type of potential fraud. In this situation changing of banks or transferring money to other accounts will create difficulties for the lender in documenting the funds.d. Even after your loan pre-approved by the lender don’t disregard the requirements of the lender. Supply them all the necessary documents such as bank statements, W2s or any other paper works. Failure in providing such important documents may cost you the loan. To finalize the process you need to submit these documents.e. There is one important thing you must remember in mortgage process. You should not deposit a good faith directly to the seller in a FSBO purchase. This belongs to you until the deal finalized. The FSBO seller must not know the good faith fund is applied at your expenses; instead you could take the help of a third party till the deal closes. In case the transaction fall through you must be sure that the purchase contract dictates to you.

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