When you decide to apply for a mortgage, there are many things your lender will ask you. There is a loan application to fill in and forms to sign. When you are going through all the forms, you may have some questions -that’s great – we love to answer questions. However, there are some things that may create problems! Here are some questions or comments that your loan officer may not want to hear!
1- I just got a new job offer and am going to start working before I close. Is that a problem? It depends – it may be depending on the type of loan and if you need a pay stub with 30 days of earnings on it. If so, you truly should wait until after you close. But if you give your notice before closing, we will not be able to get an employment verification showing you intend to keep your current job! The best situation is to not job hunt until you have closed on your home.
2- I just started my new job – oh and my pay is now all commission but my employer said I’ll make a lot more than I was making!! If you switch jobs and go from a W2 employee to a commission employee, you will more than likely not have a mortgage approval until you have 2 years as a commission employee. Commission income varies and so underwriters want to see a history of commission income.
3- I forgot to pay that bill again….what?? We will look at your credit report and late payments will affect your credit score. If you have more late payments during the processing of your loan, it can affect your approval. There is usually a quick credit report update right before closing and if you have new debt or new late payments, your loan may have to be underwritten again.
4- Look at my new credit cards – or my new car! If you are looking at a new home, do not open new credit cards or buy a new car – all of this can affect your mortgage approval. Don’t buy new furniture for your new house or you may not have a new house.
5- Don’t lie to your lender. Your lender will verify your income and assets. If you tell them you make a certain amount or you have a history of a certain income, they will find out if you are lying to them. We verify your income, employment and assets. If you lie to your lender you are committing loan fraud and that may get you sent to prison rather than a new home. If you are having issues with your employer or something else, talk to your loan officer – there may be options that you are not aware of. Just be upfront with your lender.
With all the information available online, lenders get many reports that can help you get into a home – or maybe stop you from getting a mortgage. We do have to verify all the information you give us. You want to get the best rate and mortgage program available for you. Be upfront with your lender and if you aren’t sure about something, ask. Remember your lender is here to help you through the entire process!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
