There are 10 commandments to follow when applying for a real estate loan/mortgage. These will help ensure when you are preapproved to purchase that you will not be turned down afterwards. See below:
- Thou shalt not change jobs, become self-employed or quit your job.
- Thou shalt not buy a car, truck or van (or you may be living in it)!
- Thou shalt not use charge cards excessively or let your accounts fall behind.
- Thou shalt not spend money you have set aside for closing.
- Thou shalt not omit debts or liabilities from your loan application.
- Thou shalt not buy furniture.
- Thou shalt not originate any inquiries into your credit.
- Thou shalt not make large deposits without first checking with your loan officer.
- Thou shalt not change bank accounts.
- Thou shalt not co-sign a loan for anyone
Any increase in your deb/service ration will decrease the amount of loan you are eligable. If you increase your ratio or co-sign for a loan this may change your status from approved to declined. The greater the debt ratio the less of a loan you are eligable for. Follow these 10 commandments and your eligability for a loan will increase.
If you have any further queations please let us know.