The mortgage process is exceedingly thorough and transparent. You are likely to undergo greater financial scrutiny than you would with other loan types, such as a car or personal loan. While total honesty is of utmost importance, that does not mean, you should disclose everything – especially if your loan officer isn’t asking.
You Don’t Know Anything about Buying a Home
It may seem innocent enough – particularly if you are a first-time home buyer – but you should avoid sounding like you have not done your homework about what is likely to be the biggest purchase you have ever made.
While no one expects you to know all the details or lending jargon, you should go into the process with at least a general understanding of interest rates and how much you think you can reasonably afford to pay for a house based on your current debts and income.
Future Purchase Plans
Are you already getting quotes for a sparkling new swimming pool at the new house? Do you plan to buy your dream car or purchase a house-full of furniture shortly after closing?
It is not unusual for big purchases to coincide with the timing of a new home purchase but keep that information to yourself. You may face difficulty getting approved if you disclose an intent to take on new debts or liquidate financial reserves after getting the keys to your new place.
Future Employment Changes
Mortgage lenders want to see financial stability when making loan decisions. They usually want to know how long you have been at your current job and how much you make.
The last thing they want to hear is that you have a great job and income, but you are thinking about quitting to start your own business or going part-time while you go back to school.
Most importantly, do not lie to your loan officer. Knowingly submitting falsified information about your income and finances can be considered fraudulent. Often, lenders find out the truth anyway when they begin looking at your credit reports and tax returns.
For more information about the mortgage process, contact a loan officer Johnson City today.