Your Loan Application and Sudden Financial Changes

loan applicationOnce you’ve found the right mortgage, it then becomes easy to start the loan process. Just be sure not to do anything that can put your home loan at risk or cause the lender to decline your application. One common way of doing so is making any large expenditure or buying big-ticket items. If you don’t want to derail the process, it’s best to steer clear from any sudden financial changes.

Be Willing to Wait

Before deciding to splurge money on big-ticket items, you may want to talk with your lender. In most cases, they will advise you not to do so or wait first. Expensive splurges like a new car, boat, or fancy furniture pieces can delay your closing or even lead to a rejection from the lender. Mortgage companies in St. George note that you can only make major purchases after your closing has gone through.

Delays with New Employment

Resigning or applying for a new job can also put your home loan at risk. Even if you receive an offer with a substantial salary increase, it isn’t advisable to start a new job when applying for a mortgage or when you’re in the process of completing your application. Note that many lenders need recent pay stubs from the last 30 days, so getting a new job can only push back the closing.

Lenders and Verifications

Proceeding with these financial decisions with an intention of hiding it from your lender can only result in ugly things. It’s best to keep in mind that many lenders make a verbal verification of employment before deciding to let you borrow money. They may call your company or employer to make sure that your job is secure. If they happen to find discrepancies, your mortgage is likely to be in danger.

It’s the lender’s job to make sure that you can comfortably afford the loan and your monthly payments. This is why you shouldn’t do anything that can compromise your financial ability to pay for the mortgage. It is best to wait for things to be finalized or when you become the legal owner of your new house. Talk to a reliable mortgage company today to have a smooth sailing loan application.

Comments are closed.