Things to Avoid On Your Kentucky Mortgage Loan Pre-Approval.

It's important that you avoid these mortgage mistakes once you get pre-approved for your Kentucky Mortgage Loan!


Once you've found your home, talked to a lender and signed a contract, don't do anything to jeopardize your approval before the closing date!

Here are some do's and don'ts to keep your Kentucky Home loan on track.

Do keep cash in the bank so that your financial picture looks as strong as possible.
Do establish good credit by making payments on time and making sure you don't overdraw your account!
Don't move large sums of money around without documentation. This can raise unnecessary red flags.
Don't open or close credit cards. This could potentially hurt your FICO score.
Don't make any major purchases - especially on credit cards.
Don't change your job. If possible, stay in your current job until all approvals are final.
Something to keep in mind. Your credit report is usually good for 120 days on government agency loans through AUS findings for FHA, VA, USDA and Fannie Mae Conventional loans in Kentucky.

Some lenders will not honor that, and create an overlay to say your credit report is only good for 60 days, and they will repull your credit, so it does vary from lender to lender on loan pre-approvals.

Keep your loan officer on any changes in income, assets that may hurt your loan pre-approval because sometimes depending on your loan pre-approval it could jeopardize your loan pre-approval

They will want updated pay-stubs, banks statements once your loan is pre-approved, so try to keep working 40+ hours a week, keep all bank statements in good standing with no nsf fees or overdraft charges and keep everything as status quo as you can.

Lastly, make sure if a debt that is not listed on the credit report you tell your loan officer so they can plug this into your debt to income ratio.

Most of the time the loan officer will go over your last 120 days inquires on the credit report to see if any debts are missing on the application or credit report.










Joel Lobb (NMLS#57916)
Senior Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3

Louisville, KY 40223
Company ID #1364 | MB73346


Text/call 502-905-3708
kentuckyloan@gmail.com








If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
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Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Tips to keep your Kentucky Mortgage Loan Pre-Appro...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Tips to keep your Kentucky Mortgage Loan Pre-Appro...:  10 Tips for Mortgage  Loan Applicants Not to After Pre-Approval for a KY Mortgage   1. Don’t change jobs or become self-employed.  2. Don’t...

10 Tips for Mortgage  Loan Applicants Not to After Pre-Approval for a KY Mortgage
 

1. Don’t change jobs or become self-employed. 

2. Don’t buy a car, truck, van, boat or motorhome unless you plan to live in it. 

3. Don’t use your credit cards or let your payments fall behind. 

4. Don’t spend the money you have saved for your down payment. 

5. Don’t buy furniture before you buy your house. 

6. Don’t originate any new inquiries on your credit report. 

7. Don’t make any LARGE or CASH deposits into your bank account. 

8. Don’t change bank accounts. 

9. Don’t co-sign for anyone. 

10. Don’t purchase anything until after the closing. 

Kentucky Mortgage Pre-Approval Checklist of Items Needed for Approval Letter

1. Bank Statements - Last 2 Months – All bank statements for all accounts from the last 2 months. Include all numbered pages of all bank statements!
2. Driver's License – Legible state-issued driver's license
3. Evidence of Insurance – For all properties owned
4. Federal Tax Returns - Last 2 Years – Last 2 years of federal tax returns to prove income, include all schedules
5. HOA statement (if applicable) – Most current statement
6. Loan Application (1003) – Please complete all fields
7. Mortgage Statement(s) – Most recent for all properties owned
8. Pay Stubs - Received in Last 30 Days – Last 30 days of pay stubs to prove income
9. Social Security Card – Legible social security card to prove social security number
10. W-2s - Last 2 Years – Last 2 years of W-2s to prove income

--

Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle 

Louisville, KY 40223

Company NMLS ID #1364

click here for directions to our office

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

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

😳😲👎👎👎👎👎

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

click here for directions to our office

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

Kentucky First Time Home Buyers Do's and Dont's In Getting A Mortgage Loan Approval

 Do's and Dont's In Getting A Mortgage Loan Approval Letter 

1- Do NOT buy a car or take a large loan with a new payment before you plan to buy a house if you can avoid it. 

At least get pre-approved to buy a house BEFORE you buy the car so that you are fully educated on what your max car payment should be to still be in position to buy a house and get approved. Yes, even if you don't think you are buying a house for another year it is still important to educate yourself that far in advance if you feel that you will be taking on new debt (car loan, credit card, etc) I continue to see younger home buyer prospects with $500 car payments and then want to buy a house for the first time but can't get approved because of debt to income ratio.

2- Know your credit and manage it.

 Don't wait until 2 months before you want to buy to get pre-approved if you have NEVER been pre-approved before. Too many times do I get the call that my lease ends in 2 months and I'd like to buy but have no clue about my credit, my budget and what i can afford, etc. Be prepared and be proactive. Call your loan adviser well in advance so you can understand where you stand, what programs you qualify for, OR what you need to do to get yourself in position to qualify.

3- Credit card management - 

This is a rehash from 2016 but I could/should post this every week because this is something that can really help/hurt people and you don't even know it. This applies to ANYONE reading this long winded message!!

*** Keep your credit card balances at 30% OR below of the total credit limit ***

- So for example, if you have a credit card that has a $1,000 limit, your goal is to NEVER let the balance exceed $350.00 if possible. This shows the credit bureaus that you are utilizing your credit, managing your credit, and not maxing out your debt because you can't manage your finances. This is a HUGE boost to credit scores.

- For you folks that are younger or don't have much credit history - If you are that person that pays your FULL balance each month, I'd encourage you to pay about 90-95% of the balance and let a tiny balance to roll over. That way you are carrying over credit and still managing it. Interest on $25 is nothing and the long standing effect of building your credit far outweighs paying a couple of bucks towards interest.

- Say you owe $750 on a $1,000 limit card....and you don't have the funds to pay it down to $350, then try calling your credit provider and asking them if they will increase your limit. Increasing the limit will give you more capacity on the card and get you closer to that 35% ratio and it will help you. So in this case, say you called the credit company and asked them to approve your limit up to $2,000. If they agree, your ratios are close to the 35% and you will start to reap immediate benefits from that.

********* Now with that being said, if you can't manage your budget, you are a compulsive buyer, and you don't trust yourself, do NOT do this. This is only for people that know they can resist, not use the card, and help increase their credit score. **********

Well that's more information than 1 post can handle but these are all VERY relevant issues/topics here!!! If you have questions about this or anything else, I HIGHLY encourage you to reach out and ask. If you want to buy a house and have it go smooth, fun, stress free, then do some homework upfront if you don't know. I promise that you won't be sorry.

Feel free to email me or call me if you have questions about these issues or any other issue (collections, bankruptcy, short sale, foreclosures, credit items in dispute, change in income from Base to commission, Self-employment time-frames on how long you need to be self employed to buy a house, etc)