1. Thou shalt NOT change jobs, become self-employed or quit your job when you get a loan in Albuquerque.
If you’re self-employed, to be able to use your income, our loan provider need at least one year of personal tax returns with your position while other providers require two years. If you decide to quit your job before closing, and that the lender is using that income for qualifying, it may cause your loan to be denied.
2. Thou shalt NOT apply for new credit, initiate any new inquiries into your credit or purchase/lease a new vehicle.
Applying for new credit changes what is called debt-to-income ratios. This could impact your ability to qualify for your mortgage and may initiate a new round of paperwork.
3. Thou shalt NOT use charge cards excessively or make late payments on ANY of your accounts.
Inquires will be recorded by credit bureaus, balances on credit cards exceeding 35% will affect your debt to income ratio and late payments could decrease your credit score. These may delay loan closing, or cause loan denial.
4. Thou shalt NOT make a very large deposit or withdrawal from your bank account.
Unusual deposits into your financial accounts beyond normal payroll deposits must have money sources verified by Underwriting. In Albuquerque, this could result in loan processing delays or even denials.
5. Thou shalt NOT buy furniture, appliances, or household items before closing.
Although many people are anxious to furnish their new home, it is NOT the right time to do this when you get a home loan. Albuquerque has similar banking laws to other cities. Large purchases cause deductions in your banking accounts or additional debt on credit cards.
6. Thou shalt NOT change banks.
A 2 month history of reserve funds is required when you get a home loan in Albuquerque, which is why opening new financial accounts near a closing date may void the history. This may result in loan closing delays or denials.
7. Thou shalt NOT co-sign for someone else’s loan.
When you get a home loan in Albuquerque, any changes to your credit report or status could negatively affect your ability to close your loan on time or at all.
8. Thou shalt NOT spend your down payment money.
Most conventional loans require 2 months of reserve money to be verified in your available financial accounts. Once it has been verified for use at close, spending these reserve funds may result in loan closing delays or even loan denial. You should contact your Mortgage Planner if this happens.
9. Keep holy thy closing date and paperwork.
Please try to schedule vacations AFTER your closing date. If you’ve started packing for a move, remember to keep out any bank statements, tax returns, or other important paperwork.
10. Thou shalt NOT file for divorce prior to closing.
Divorce affects your marital status and may sometimes complicate the process when paperwork is being finalized. A new credit report is pulled before closing and any inquiries will need to be explained and considered even if a loan commitment has been issued.
If you follow these simple rules, your loan process will be a smooth one! There will be no more hassle when you get a home loan in Albuquerque. Contact our partner lender from Legacy Mortgage, Robert Sanchez (NMLS #463501) with these details;.