SAN ANTONIO – If you’re a veteran or active military member looking to buy a home there are a few things you should avoid to make the process a little easier.
Pat Fitzgerald, senior loan officer, has five quick tips for things you should avoid during the loan process.
Five things to avoid during the loan process
1. Quit your job/change job/retire
The day before closing, Pat Fitzgerald has to call your employer to make sure you’re still there. If you quit, retire or change jobs, that will be known the day before closing.
"We count the current income for the applicant," Fitzgerald said. "If that income changes there’s a good possibility that loan may no longer be closable."
2. Buy a new car
All mortgage companies have to do a soft credit pull the day of or the day before closing to make sure you haven’t taken on any new debt. If you purchase a new car, that will be revealed during a soft credit pull.
"The day before we close, we have to pull credit and see if the client hasn’t taken on any new debt," Fitzgerald said. "Plus, when you co-sign for somebody we have to charge it against you as if (the credit) was yours."
3. Max out your credit card(s)
If credit cards are maxed out, the minimum payment on your credit report goes up.
4. Let any collections show up on your credit report
Even something as small as a co-pay at the doctor’s office can upset your approval.
5. Spend the money you set aside for your closing costs
"Be very careful and pay all your bills during the loan process," Fitzgerald said.
For more information, call Pat Fitzgerald at 210-215-4400 or visit TheVALoanGuy.com.
Information courtesy of The VA Loan Guy Pat Fitzgerald - Texas Vet and VA Home Loans.