Top Seven Mistakes When Getting a Loan

The home buying process has become much more difficult now days compared to a few years ago. There a few reasons for this - the different types of homes more prevalent on the market than the past (unapproved short sales, approved short sales, REO's, corporate owned, pre-foreclosure, etc), new sales contracts, much more difficult to get pre-approved for a loan, etc. As I always recommend, it is best to use a real estate professional when you are either buying or selling a home. With that being said, I wanted to share with you the top seven mistakes people make when getting a loan. A friend of mine, Patricia Perez, who is exceptional at the whole process of getting people approved and making sure the transaction closes as stress free as possible, was kind enough of to share the information below.

1) DON'T BUY OR LEASE A NEW CAR. A car payment will bring down your buying power, this means qualifying for a lower amount. Get the house first, then the car.

2) DON'T MAKE ANY LARGE DEPOSITS OR OPEN/CLOSE BANK ACCOUNTS. Lenders look at your past two months bank statements and any deposits that are not payroll related will need to be documented and explained. Cash at home IS NOT acceptable.

3) DON'T CHANGE JOBS OR TURN IN YOUR REISGNATION. A new job could require getting 30 days worth of paystubs. Resigning could jeopardize your approval especially if you will make less money or go into a different profession.

4) DON'T CO-SIGN FOR ANYTHING. This debt will count against you unless you can provide twelve months cancelled checks showing another person is paying it. Don't risk it - think about you first.

5) DON'T CONSOLIDATE BILLS. This may not be necessary and if you touch anything on your credit it could actually lower your credit score. If you fall below a 620, you usually cannot get a mortgage.

6) DON'T APPLY FOR ANY NEW CREDIT ESPECIALLY AFTER YOU HAVE BEEN APPROVED. Your credit report will be pulled again five days prior to closing. Any new inquiries or new debts will be counted against you and can void your loan approval. Don't go to the Rooms 2 Go sale - wait until after closing to buy anything.

7) DON'T PACK AWAY OR THROW AWAY IMPORTANT DOCUMENTS. The lenders will ask you for your W-2's, tax returns, bank statements (every page including blank pages) and paystubs. So be sure to have them handy.


Amit Bhuta, ABR, CNS, e-PRO, Realtor-Associate
Coldwell Banker Residential Real Estate
Serving Miami-Dade and Broward County
(305) 439-3031 Cell
(305) 412-1171 Fax
www.ReasonsToHireMe.com (Why Choose Me?)
www.DadeCountyMLS.com (Website)
www.AmitsBlog.com (Blog - Web Journal)
abhuta@bellsouth.net (Email)
www.google.com/profiles/avbhuta (Google Profile)