Did you know securing a home loan isn't a done deal until the final closing? It's true! Any financial changes between your application submission and the final signing can impact loan approval. To help you navigate this critical stage successfully, here's a friendly reminder of what to avoid after applying for your home loan.
The lenders assessing your loan application need to track the source of your money. Depositing large amounts of cash can be challenging to trace. To ensure transparency, talk with your mortgage professional to understand how to document such transactions.
It's not just home-related purchases that impact your loan eligibility. Any significant purchases can raise concerns for lenders. When you add new debt, your debt-to-income ratio increases, potentially affecting your mortgage approval. So resist the temptation to make large purchases, even for furniture or appliances.
When you cosign a loan, you take on the responsibility for its repayment. However, this also increases your debt-to-income ratio. Even if you're not the one making the payments, lenders consider them when evaluating your loan application.
Consistency among your accounts makes it easier for lenders to track and verify your assets. Before transferring funds between accounts, it's important to consult your mortgage professional to ensure a smooth process.
Whether it's a new credit card or a car loan, applying for additional credit can have consequences. Multiple credit inquiries from different financial institutions can impact your FICO score. Lower credit scores may influence your interest rate and even your eligibility for loan approval.
Some believe that closing credit card accounts can lower their risk profile and increase the chances of loan approval. However, that's not necessarily true. Your credit score depends on various factors, including the length of your credit history and your credit utilization ratio. Closing accounts can negatively impact these aspects of your credit score.
Let your mortgage professional know about any changes in your financial situation. This includes fluctuations in income, changes in assets, or adjustments to your credit profile. By sharing this information, you can work together to ensure your home loan approval stays on track.
It's best to always disclose and discuss your financial intentions with your mortgage professional before making any significant financial decisions.
Before making large purchases, moving your funds around, or undergoing major career changes, consult your mortgage professional to provide insights into how your financial decisions may impact your home loan. Your home purchase may depend on it. Did you find this information helpful? Please share it with anyone you know who’s considering buying a home!
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 1075801
43060 Running Deer Drive
Coarsegold, CA 93614
American Financial strives to ensure that its services are accessible to people with disabilities. American Financial has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
American Financial makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows www.americanfinancial1.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
American Financial accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
American Financial continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on American Financial website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on American Financial website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: firstname.lastname@example.org