Common Activities That May Impact Your Loan Approval
- Applying for new credit or incurring new debt
Any added monthly payments can impact your overall debt-to-income ratio, which may negatively affect your loan approval. In addition to obtaining your credit report when you apply for a loan, we are notified of any key changes to your credit while your application is in process.
- Switching jobs
Any change in your income, whether you are under a probation period, or even entering a different line of work all may play a role in the approval process.
- Making large deposits in your accounts without a paper trail
If you plan to rely on these funds for loan approval, such as your down payment, we may require documentation to show where the funds came from. Your Mortgage Loan Originator (MLO) can provide additional details on our documentation requirements.
- Co-signing on new credit
Adding your name to another loan or financial agreement may increase your debt-to-income ratio.
- Using your charge accounts excessively or failing to make your payments on time
Again, any new debt can negatively shift your debt-to-income ratio, and a history of non-payment can also negatively affect your loan approval.
- Spending your down payment or closing cost money
Funds are always verified for closing, so it’s important you leave those dollars set aside.
Each customer is unique, so always check with your Mortgage Loan Originator (MLO) if you have questions about your specific situation.
- Borrower's Name
- Borrower's Social Security number
- Property Address
- Purchase Price/Appraised Value
- Loan Amount