Keep In Mind That It Is Nearly Impossible To Be Dishonest On A Home Loan Application

Category: Finance.

This article examines some of the issues that you may wish to resolve before you even pick up the application form for a home loan.

The information that you submit will be checked and verified so the more problem areas you can fix before submitting the application the better your chances of getting the loan. Keep in mind that it is nearly impossible to be dishonest on a home loan application. Here are some tips that might help you: Lenders like to see current employment at the same place for at least two years running. If you have to borrow money from family or friends in order to have a down payment, do so at least six months prior to submitting the application. If you are a little shy of that benchmark and can hold off until you meet that milestone, then do so. This is not cheating, it is good planning.

When you get them, carefully go over each one and look for any mistakes or omissions. Before you even consider filling out an application order a copy of your credit reports from the three major credit reporting agencies. By law, the agencies have to make corrections when corrections are warranted. Another important issue to carefully consider before submitting your application is your current debt level. Remember, these same reports will be used later on to determine your credit score so make sure the information is correct and up to date. If you have a lot of loans outstanding you should seriously consider either consolidating them or paying off as many as possible before you submit the application form.

It is far better to do these pay downs six months in advance of your application submission. Lenders will use a debt- to- income ratio in considering your creditworthiness and the less debt you have the better. If you are behind in any payments, make sure you catch up on those before you submit the application. If at all possible, try to have at least three to six months of timely payments for the lender to see. Again, try to do this in advance of submission. There are some occasions when bad credit marks are legitimate and will be on your credit report.

Be honest with the lender and when possible substantiate your story with documents. If this happens be prepared to explain those to the lender. Do not close long- held credit card accounts. You do not have to charge anything to this account just keep it open. Lenders like to see long histories of credit. If you really want to close the account, do so after your loan is approved. This is like a dry run and it will help you to see exactly how much money your lender is willing to stake you.

Once you have taken care of all the problem areas that you can take care of, you may want to consider doing a pre- qualification with your bank or lender. Pre- qualification is usually a free service. Keep in mind that pre- qualification is not the same as pre- approval, but it can be very helpful in showing your how much house you can get using your current financial status as the foundation.

Read more...

Discount Cards Can Appear In Different Forms - Finance:

There are a lot of ways to raise fund.

A Wedding Loan Can Help You To Fund All Or Part Of Your Wedding, And Means You Can Have The Ceremony You Really Want - Finance Articles:

Weddings are becoming more and more expensive, with the average UK wedding costing well over 15, 00Each year the cost is rising, and people are spending more and more on their weddings.

Each One May Specialise In Specific Types Of Loans Or On Specific Types Of Customers - Finance Articles:

Unsecured loans for tenants can be used for just about any personal use and for that special day, they can often be the best solution to raising the finance you need so that you can afford to have everything you ve always dreamed of. To have a wedding you ve always wanted can cost several thousands of pounds and few people have this kind of money lying around in a savings account.