If you are thinking about buying a property in the near future, there are specific mistakes that you should avoid as they will affect your ability to get a home loan. Below are Las Vegas buyer mistakes to avoid.
Las Vegas Buyer Mistakes To Avoid
Lenders review your debt to income ratio. Making major purchases either on your credit cards or with new loans might dramatically change that percentage. Usually, the higher your debt, the lower your loan qualification. This is even more important once you have completed your formal mortgage application. Lenders may re-run your credit report immediately prior to final approval to verify that your figures has not significantly changed. If you gained additional debts, this can result in you not being qualified to purchase the home.
As part of the underwriting process, lenders review your previous and current earnings to determine your ability to make payments. A solid history in employment is very important. Moving employment before or during the mortgage process can cause difficulties with qualifying for a loan, especially if the new job is in a new line of work or at a lower rate of pay. During the loan process, it can also create delays while the new job is confirmed.
Mortgage processors normally evaluate your bank account statements over the past several months. Moving funds to a new account may lead to delays. It is best to keep money in the existing location until after the closing.
Large Cash Deposits
Many types of loans mandate that you use a certain percentage of personal money for the down payment and/or settlement costs. Mortgage companies verify this by analyzing bank statements. Any cash deposits are closely scrutinized. You may be asked to provide details on the source of those deposits.
Shutting Down Accounts
While getting ready to buy a property, you may decide to diligently pay off debts. Prior to doing this, consider speaking with a mortgage professional on whether it is necessary based on your financial situation. If you do pay off debts, do not close the accounts as this may affect your credit score. It may be best to leave the accounts open with no balance.
More Advice on Las Vegas Buyer Mistakes To Avoid
The above Las Vegas buyer mistakes to avoid includes just a few examples. As a local real estate broker, I can provide you with a list of local lenders in the Las Vegas area. You may reach me, Arina Hanciulesco, at Realty PROS Las Vegas via phone at 702-306-4766 or email at firstname.lastname@example.org.