EIGHT THINGS YOU SHOULD NOT DO

BEFORE APPLYING FOR A LOAN

1. DON’T buy or lease an auto.  The lender looks carefully at the debt-to income ratio and a large payment such as a car lease or purchase can greatly impact those ratios and prevent the buyer from qualifying.

2. DON’T move assets from one bank to another.  These show up as new accounts and complicate the application process, as you must then disclose and document the source of funds for each new account.  The lender can verify each account as it stands.  You can consolidate them later.

3. DON’T change jobs.  A new job may involve a probation period, which must be satisfied before the income from that job can be considered for qualifying purposes.

ESPECIALLY, DON’T change industries.  Lenders are looking for a stable two-year history in the same line of work. 

EVEN WORSE, DON’T change from a salaried position to self-employed.  Self-employed persons are a risk when they start a new, possibly volatile business.  Lenders want to see a two-year history of being self-employed.

4. DON’T buy new furniture or major appliances for the “new house”.  If the new purchase increases your debt load, it can disqualify you from the loan or deplete your funds to close. (Even a no payment/no interest plan will show up on your credit report with the future payments showing as debt.)

5. DON’T run a credit report on yourself or allow anyone else to check into your credit.  This will show up on your lender’s credit report as an inquiry and must be explained in writing.  The inquiry may also affect your credit score.

6. DON’T attempt to consolidate bills before speaking with your lender.  The lender can advise you if this needs to be done.  Opening new lines of credit even if it is to consolidate may adversely affect your loan.

7. DON’T pack or ship information that may be needed for the loan application.  Important paperwork such as W-2 forms, divorce decrees and tax returns should not be sent with your household goods.  Duplicate copies takes weeks to obtain.

8. DON’T worry.  That’s our job.  Even if you have committed a loan faux pas, Sterling Capital will help you to get the best loan possible or give you advice to get you moving in the right direction.

THREE THINGS YOU SHOULD DO

TO APPLY FOR A LOAN

1. DO fill out the pre-qualification worksheet

    2.   DO get together your paper work:                                    If applicable:

1. W-2’s for the past two years                                    a. Bankruptcy papers           
2. Pay stubs for the past month                                     b.  Divorce decree
3. Most recent bank account or 401K statement           c.  Full taxes—self-employed

    3.  DO get in touch with Tips4HomeBuying to help you get into the home of your dreams.

Mike Gardner 1-877-664-7470

Download application at www.Tips4HomeBuying.com and click on Pre-qualify.