Once your mortgage loan package has been sent to the mortgage lender, there are a number of things you should avoid doing that will change your financial picture. Remember, the mortgage lender is looking for stability and consistency. If you want the best interest rate, keep that in mind. Here are a few things to consider:
The Las Vegas home mortgage lender is looking to see what your source of down payment is.
Your Las Vegas home mortgage lender will most likely ask you to provide proof of your liquid assets. This includes bank statements for checking and savings accounts, verification of investments, and any other liquid assets. Some of the things the Las Vegas home mortgage lender may ask for may seem trivial, but keep in mind, if you are planning a move to a new Las Vegas home, it’s important to have all documentation readily available. If the mortgage lender asks for cancelled checks or deposit receipts to meet certain conditions, you want to be able to find these things quickly to avoid delaying the closing of your loan. Make sure your paper trail is easy to document, and don’t move money from one account to another.
Avoid making any major purchases. You might be thinking about purchasing new appliances for the new Las Vegas home. This is not the time to do it. Avoid making any major purchases on jewelry, appliances, furniture, vacations, or anything with a significant price tag.
Buying or leasing a car can make a negative impact on the way the lender views your financial status. This is a big ticket item that dramatically affects your debt-to-income ratio. You may feel you have room in your budget to purchase a new car, and think this is a worthy investment if you are looking for a Las Vegas home that will mean a longer commute for you on a daily basis. But by tacking a car payment onto your existing debt, you reduce the amount that you will qualify for in a home loan. A $400 a month car payment can reduce your approved loan limit by as much as $50,000. Think about doing this after your mortgage loan is approved if you really need it.
If you have to change jobs, you may be asked to document why this change occurred.
If you are changing jobs to increase your income, that’s a no-brainer for the Las Vegas mortgage lender. If you have an erratic work history to start with, another job change may make it look worse for you when applying for a mortgage.
If you are an hourly wage employee, Las Vegas casino dealer, cocktail waitress, valet and many other jobs in Las Vegas, most likely a job change will have no effect on your ability to qualify for a loan. If you have a track record of a consistent amount of overtime or consistent bonuses over the last two years, the Las vegas homes mortgage lender views this favorably. If you change jobs, there is no way of knowing if the new employer will pay overtime. Many do not! If you work on a salary + commission or straight commission basis, it has a dramatic effect on your stability. If you are considering starting your own business, again, this is something to consider after your Las Vegas mortgage loan is funded.
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Avoid changes to your financial profile during the loan and mortgage process.