What NOT To Do When Applying For A Home Loan In Kentucky!

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These tips will keep you on the right track both during the prequalification phase and right before the loan process begins.


Do not apply for new credit

It’s not uncommon to get invitations to apply for lines of credit.  Just don’t respond to these offers ­ no matter how good it sounds.  Why?  If you do apply for new credit, the creditor will pull your credit.  This inquiry can potentially lower your credit score.

Also, do not apply for new lines of credit for furniture, appliances, computers or similar items INCLUDING offers for “no payments for 6 months.”

Do not max out credit accounts

Running up your credit card balances is one of the fastest ways to bring your credit score down.  Once you begin the loan process, try to keep your credit cards well below the available credit limit during your billing cycle.

Do not close out credit cards 

If you close out accounts, it can change your ratio of debt to available credit which has a significant impact on your credit score.  If you want to close out some accounts, do so after your loan closes.
Do not close out credit cards

Do not pay off collections

Strange as it sounds, updating activity on a negative account by paying off old collections and charge offs can lower your credit score. 

Do not co­sign on another person’s loan, change employment or change your name or address. 

This could cause a credit repull which could effect your mortgage credit rating with the loan. Don't change jobs because this could disqualify for the loan pre-approved for. 
Do not make any unexplained bank deposits 

The less activity that occurs while your loan is in process, the smoother it will be.  There can be unavoidable situations, so please contact your mortgage lender prior to any changes to discuss.
Do not make any unexplained bank deposits Underwriting is very strict on verifying any and all deposits.  Regardless of the amount, be prepared to verify the source of deposits.  Problems arise when there are cash deposits that are unable to be verified.


-- 
Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.
10602 Timberwood Circle 
Louisville, KY 40223
Company NMLS ID #1364


Text/call:      502-905-3708
fax:            502-327-9119
email:
          kentuckyloan@gmail.com