Many Brantford home buyers tend to make common errors immediately after submitting a loan application that could result in them getting denied a mortgage. If you avoid them, then the likelihood is that you will obtain your Brantford home loan without a hitch. Here are some of the most common mistakes that people make immediately after submitting their loan application:
• Don’t deposit large amounts of cash into your bank account. Lenders need to be able to source your money, and cash isn’t really traceable. Making small deposits is okay, but if you’re receiving large cash gifts from family members you may want to refrain from making the deposit for awhile. It makes it more difficult for a lender to track your assets.
• Don’t make any large purchases. New cars, large amounts of furniture and other large-scale purchases raise a red flag to lenders if they are bought too close to when you submitted your application. These sorts of purchases tend to require additional funding over large periods of time, and that could interfere with a potential mortgage payment. In order to avoid any questions about your spending, save the large-scale purchases for AFTER you receive funding.
• Don’t co-sign loans for anyone else. Even if you’re not going to be paying the monthly payments on another loan, you are still obligated since your name is on the paperwork. The lenders will count this against you, so doing this when you’re trying to obtain a mortgage may not work in your favor.
• Refrain from changing bank accounts. Lenders track assets. If you’re switching bank accounts immediately after applying for a mortgage, this task is made much more difficult due to a lack of consistency within the accounts. If you’re going to do this around the time you submit a loan application, make sure you talk to your lender first.
• Don’t apply for new credit OR cancel existing credit accounts. Your FICO score is affected every time you apply for a new credit card, which could impact your interest rates or result in you getting denied a loan. In regards to canceling existing accounts, depth and length in your credit history matters. If you cancel a long-standing credit card, you score will be affected, which could complicate matters when the lenders are reviewing your application.
As a Brantford Real Estate Agent who frequently works with home buyers, I feel that it’s important to educate my clients on how to put their best foot forward during the loan application process. This can be a complicated and stressful part of any real estate transaction, and avoiding these common errors will ensure a smoother outcome.
If you have any questions about how to start your Brantford home search, don’t hesitate to contact me! I’ll use my years of experience to help you throughout each stage of the transaction. I hope to hear from you soon!
Wally Dufrat | Sales Representative
RE/MAX Twin City Realty, Inc. Brokerage
RE/MAX Twin City Realty, Inc. Brokerage
Over 521 Closings!
515 Park Road North | Brantford, ON N3R 7K8 Direct: (519) 752-5400 & (877) 759-5900 | Cell: (519) 761-7400 | Fax: 519-752-3400
Before You Buy or Sell Your Next Home, Visit My Websites at:
www.BrantofordHomeInfo.com or www.FreeBrantfordHomeInfo.com for FREE Information!
515 Park Road North | Brantford, ON N3R 7K8 Direct: (519) 752-5400 & (877) 759-5900 | Cell: (519) 761-7400 | Fax: 519-752-3400
Before You Buy or Sell Your Next Home, Visit My Websites at:
www.BrantofordHomeInfo.com or www.FreeBrantfordHomeInfo.com for FREE Information!
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