Whether buying a new home or refinancing your existing home, the loan process is vitally important. Beyond all the paperwork, there are many factors that lenders will consider that may affect your approval. Follow VLG’s guidance below.
The Do’s of The Loan Process
DO COMPLETE YOUR APPLICATION THOROUGHLY
The process will go faster if the lender does not need to contact you for missing information.
DO RESPOND TO ALL QUESTIONS AND REQUESTS PROMPTLY
Additional conditions may need to be cleared to help underwriters make a decision. Handle these requests quickly so that your loan can close on time.
DO DISCLOSE ALL OTHER LOANS AND CREDIT ON FILE TO YOUR LOAN OFFICER
Be transparent with your loan officer so your application will not get held up.
DO MAKE YOURSELF AVAILABLE AS YOUR CLOSING DATE APPROACHES
Schedule plenty of time to review and sign documents and to pay closing costs and your down payment.
The Don’ts Of The Loan Process
DON’T MAKE ANY MAJOR PURCHASES
Buying a car, appliances or furniture may alter your debt-to-income ratio and may negatively affect the appearance of your ability to make a monthly payment.
DON’T OPEN ANY NEW LINES OF CREDIT DURING THE LOAN PROCESS
This may also negatively impact your debt-to-income ratio and may harm your ability to qualify for a loan.
DON’T MOVE MONEY AROUND IN YOUR ACCOUNTS
This may appear as an attempt to hide debt or large balances.
DON’T USE UNTRACEABLE MONEY
Much like moving money around in your accounts, using large amounts of cash or untraceable money may make it hard for underwriters to understand your spending habits and cash flow.
DON’T MAKE A CAREER CHANGE UNTIL AFTER YOUR LOAN CLOSES
It is important to demonstrate income stability.
Questions About The Loan Process?
Have more questions? Contact us today to get pre-approved for VA financing. A licensed loan officer can help you to understand all your options and we will walk you through the financing process from start to finish!
