16 Tips You Should Notice When Apply for Mortgage(1)

Mortgage is important when you try to buy a house. How can you make sure your mortgage gets done？Today, let's hear from a Bay Area loan broker sharing 16 tips on moertgage.

First, I'm going to share two real stories with you:

1. Borrowing money on a credit card almost ruined the client's real estate transaction in the Bay Area

Last week, one of my clients almost ruined his home purchase at the last minute. After signing the final loan document, he borrowed $ 40,000 from the credit card to prepare the renovation of the house. He thought it was a "Completed" after signing the final loan document. He did not realize that the loan bank would check the source of funds for the final purchase of his home at the last minute before making the loan, and he would suffer many setbacks.

2. Quit job when apply for mortgage, resulting in giving up your efforts before buying a house in the Bay Area

A few of my clients a few years ago bought a new home in the Bay Area. After signing the final loan document, he thought it was a "Done Deal". He quit his job and lost the loan for this house. He did not realize that the loan bank would call his company two days later to confirm that he was still employed before the loan.

Given recent events, I would like to share with you the "16 important articles when applying for a home purchase loan" that I wrote for you, for reference, to make your loan to the smoother purchase!

These are the problems I have encountered in the field of mortgage lending over the past ten years. Not all errors are fatal, and we usually try to fix them. But they will undoubtedly increase the obstacles, thus delaying the transaction of the houses. This list is not exhaustive, as we are constantly discovering new trade barriers. But at least it may remind you to speak to your loan broker before taking any action.

1. Do not borrow large amounts on your credit card when you apply for a loan. This will not only increase your debt ratio, but will also lower your credit score, which will result in the rejection of your original loan application.

2. Don't quit job when you apply for a loan. Even if you signed the final document. If the loan bank is based on your income status as a condition for examining the loan, you should still work in the original business when the loan bank finally grants the loan. Know that the credit bank will call your employer to confirm before lending.

3. Don't change jobs when applying for a loan. Even if the salary of the new job is the same as the salary of the previous job or even more, it will increase the complexity of carrying out your mortgage loan transaction. Some lenders will only grant loans 30 days after starting your new job, which will delay the time of your home purchase and may also cause you to pay expensive penalties to extend the validity of your blocked interest rate. .

4. Don't change your salary when you apply for a loan. If you reduce working hours or lower base salary in exchange for a higher commission or bonus, the loan bank will only calculate a lower base salary, since the commission or bonus must have a history of two years to be taken into account. In addition, if you move from an employee of W2 to an independent contractor, even if it is a similar job and the income is higher than the original, the credit bank will think that you have no base salary. Since the entrepreneur is considered to be self-employed (self-employed), two years of income tax return are required to calculate his income.

5. Don't buy a new car when you apply for a loan. Even if the lending bank already has your credit report, it will usually update your credit report before lending, check if you have new debt, and recalculate your debt ratio to determine if you still meet the lending standard. . If you buy a car with money, they will confirm if you still have enough money to complete the purchase. In addition, checking your credit can also cause your credit score to drop. If your new credit score is lower than the loan bank's requirements, your loan request will be rejected.