The “Guided Path” to a Successful Real Estate Loan Application
- Kick-off your real estate loan journey by obtaining your free Credit Report from all three major credit bureaus. Correct any errors to ensure you’re starting on solid ground.
- Maintain job stability during your real estate loan application process. Any sudden employment changes could cause a bump on the road to loan approval.
- Hit pause on any big-ticket purchases, like cars or furniture. These could impact your debt-to-income ratio, a key factor in your real estate loan application.
- Keep your credit utilization below 34% of your credit limit. It’s like keeping your property well-maintained in the real estate market – it just looks better.
- Safeguard your closing cost funds. They’re an essential part of the real estate loan process – think of them as your reservation deposit on your future property.
- Be upfront about all debts and liabilities on your loan application. It paints a complete picture of your financial landscape, which is crucial in securing a real estate loan.
- Keep other credit inquiries to a minimum during your real estate loan application. Too many inquiries could potentially flag you as a high-risk borrower.
- Consult your loan officer before making large, abnormal bank deposits. They can help guide you through the policies regarding down payment funds in the real estate loan process.
- Avoid changing bank accounts during the loan application. It’s like staying consistent with your property search criteria – it just simplifies the process.
- Refrain from co-signing another loan during your application process. You wouldn’t want any surprise additions to affect your real estate loan journey.