The last few years have been especially difficult for banks who have watched as thousands of their home loans have gone into default, and homes into foreclosure.

Because the lending market has become so tough, lending guidelines have already started changing, making it tougher for some people to obtain home loans.

I thought you should know how obtaining a loan is changing, along with some things you should avoid doing when you’re trying to get a loan.

Here are some things that you should avoid doing when you’re trying to buy a home – right up until the loan has been funded and you’ve closed on the home.

• Don’t open new credit cards or lines of credit: When the amount of debt you take on, or available credit goes up, that will be a negative to lenders. Stay away from these things until you’re actually moved into your new house – after the loan has been funded.
• Don’t make any new charges on your existing credit:  If you already have existing credit cards or lines of credit, don’t make any new charges, especially larger ones, on the card.  Your debt to income ratio will be determined, and the more debt you have, the worse off you are.
• Don’t finance any large purchases:  Put any plans to finance a new car, or other large ticket items until after you buy the home.    Even leasing a car should be put on hold.  Again, your debt to income ratio will be looked at.
• Don’t try to hide things from your lender:  If you try to hide things from your lender it can end up causing you to lose your loan.   Don’t try to hide things like large deposits to your accounts (be ready to explain where the money came from), child support payments or alimony.  They will end up finding these things out anyway, so no reason not to mention it and jeapordize your loan.
• Keep your credit score high:  Do everything you can to make sure your credit score stays as high as possible.  Pay your bills, and don’t let things go into collections!

When you’re trying to get a home loan, you need to make sure that your credit situation stays strong, all the way through the process until the loan is actually funded.

In the past people may have been able to get away with financing a car after getting your loan approved (many people buy new cars when moving!),  but nowadays things have changed. It’s better to hold off on any new purchases, new credit cards, or anything else that could affect your credit – until things are signed sealed and delivered.

The Real Estate Industry is continually shifting, growing to meet the changing needs of its customers.

Knowledge of the industry allows the accomplished real estate professional to better understand those needs.

That’s why I feel education is a necessity and why I pledge to stay informed —

TO RISE ABOVE THE CROWD FOR YOU!

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