PREPARING FOR A LOAN
Speak to a lender.
Find out what is the best goals and the qualifications to reach that goal with the most advantageous loan for your circumstances.
DOCUMENTATION Save All!
Document deposits from outside sources. If you did not receive a W-2, have an invoice for services, gift receipt or documentation as required by the lender.
YOUR APPROVED! NOW WHAT?
EMPLOYMENT - In most cases, your employment history is part of the loan qualification.
Don't employment without consulting your lender. If you have a job offer, speak to your lender before changing jobs.
CREDIT - Your credit history is part of your loan qualification.
Your credit is pulled prior to approval and right before closing.
Be sure to pay all debts on time. A missed payment could decrease your credit score to the point of loan disqualification.
Do not apply for a new credit line of any kind. Telephone service, utility service, credit card, furniture loan, car loan until the loan closes without consulting your lender.
ASSETS - Your assets are part of your loan qualification
Speak to your lender before you transfer assets, cash, checking account balances. There are many examples of trying to obtain verification letters after the fact for funds transferred. It is best to document at the time of the transaction in a manner acceptable to the lender.
Example: Consult your lender if you plan sell a car (an asset your put on your loan application) during the transactions and put the money into the bank (large deposit will need documented) or spend the money (asset is missing) during the transaction. It may not impact the loan, but it may have been used to calculate loan qualification. The lender will know what impact selling an asset will have and how to document the transacation.
Example: You have a $1000 escrow due in two days. You want to ask someone else is going to write the check. Is it acceptable to have someone pay your down payment based on your loan? Do you need documentation.