Top 10 Loan Approval Taboos
Make sure nothing gets in the way of achieving your home financing goals.
Some loan approval taboos may seem obvious, but others not so much. Check out this list to make sure that you avoid the top 10 loan approval taboos during the process of buying a new home.
- Co-sign on any debt with relatives or friends.
- Transfer money between accounts, unless receiving complete documentation from the bank itemizing all transfers.
- Withdrawal or deposit of large sums into their checking or savings accounts unless absolutely necessary.
- Make any career moves.
- Allow bank accounts to go in the negative, even if they have overdraft protection.
- Apply for new credit in any form, or apply for credit to consolidated.
- Have a friend or relative pay for anything related to the purchase of the home (appraisal, earnest money, down payment, etc.), since gifts are only allowed under certain guidelines.
- Keep cash in a safe or an overseas account if they plan to use these funds as a down payment. Inquire about how and when would be the best time to put funds into U.S. bank account if needed.
- Close credit card accounts, which may cause a debt ratio to go up.
- Give personal information to anyone else who might run a credit report; credit inquiries may hurt your score.
Guest post by Kurt Almond – Loan Consultant at New American Funding