Just an FYI, do not get married, buy a car, or do anything major while trying to get a home loa

As a loan officer, I remind my customers time and time again to wait before making any major purchases or changes in your life. It's the first week of may and 2 loans have fallen out because borrowers decided to get married. Getting married means we have to account for spouses debts on Govt loans and that can really negatively impact your debt to income ratios.

Below, I've pasted some addition helpful hints if you want to make sure your loan clears quickly and without problems or delays:

BANK ACCOUNTS AND ASSET STATEMENTS:
• NO NSF’s (overdraft fees)
• NO Payday Loans
• NO Cash Advances
• MINIMIZE TRANSFERS between accounts. IF you must transfer between accounts, ALL accounts involved MUST be submitted for verification.
• LARGE DEPOSITS that come from a sale of personal property will require the following:
o Proof of Ownership (example: title, insurance, etc.)
o Bill of Sale
o Proof of Value (example: Kelly Blue Book on autos)
o Deposit amount MUST match sale amount.

CREDIT:

• JUDGEMENTS must be paid. Release or satisfaction letter required.
• NO LARGE PURCHASES during loan process. (example: car or furniture purchases)
• DO NOT OPEN NEW LINES OF CREDIT during this process. This can jeopardize your approval.
• WATCH YOUR SPENDING.
EMPLOYMENT:
• DO NOT QUIT YOUR JOB during the loan process OR within ONE MONTH of loan closing. Your note will be deemed due and payable should this occur.
• REPORT ANY EMPLOYMENT CHANGES during the loan process TO US IMMEDIATELY - IN WRITING.
• DO NOT GO ON A LEAVE OF ABSENCE from your job during the loan process. You must notify your lender of ANY employment changes IMMEDIATELY. This includes being fired, laid off, medical leaves, FMLA leaves, etc.

Thanks and I hope this helps!

Edit: alright guys, headed to bed but I will try to answer all your questions tomorrow. I hope this thread has been helpful!!

 

That's a great piece of advice there. In the UK you are still considered separate until you open a joint account. When you do this, your credit histories become linked and this can, of course, affect your own rating.

 

Thanks for that hard piece of advice there @BerndFoll...i've tried to get a loan on several occasions but failed terribly... its the last thing i'd consider if i wanted money..the very last thing and i pray to God, i never borrow a loan ever again!

 

Thank you for sharing this. Getting married, buying a car and a house are three very major things with big amounts to consider and I would never ever think of doing them altogether. It would be a major cause of chaos for me when it comes to money and spending. This information you shared is a good source of advice for anyone planning to apply for a loan.

 

Well yeah better to do these things one by one. I can't imagine the pain of having to go through the whole loan process just because you did something that could have easily waited until the loan got approved.

 

Now I know what to do before taking a loan after reading this thread. In fact, I was about to buy a car and then wanted to purchase a house. Thank God I came across this thread. Now I will make sure that my take home loan first and only then think of buying anything else.

 

That's a wonderful idea. To be honest with you. You want to avoid the majority of these things when you're trying to purchase a home simply because it will lower the rate on your loan. You want to make sure that you keep all these things out of the equation so therefore your more easily qualify for a home loan helping you to proceed forward and a seamless fashion.

 

I don't know how things work in your country but see carefully if there is a possibility of getting a slightly larger mortgage. Say you need an extra few thousand for some small renovations you want to do yourself etc. That way, you can actually use the money for the car and might not even need a separate loan. Interest rate is going to be lower in the mortgage and you will have just 1 loan to worry about.

 

Thank you for the advice. I will definitely not do anything major whenever getting a loan.

 

Awesome advice! There's alot that can be created around this. When it comes to purchasing a new home I think there are quite a few individuals whom think it's just about contacting a real estate agent, applying for a loan then looking for their dream house without being completely aware of all the back financial blueprints. There is always alot of things that go into play when you are making any type of major purchase. I personally think it's better to own a house and pay a mortgage than renting if financially possible.