Chicago Home Loans

  Things To Avoid During Pre-Approval for
Chicago Home Loan
Many new Chicago homebuyers make the mistake of rushing out to buy things to fill their home with as soon as a seller accepts their purchase offer and a lender pre-approves their loan. But there are still a few major hurdles to overcome before the keys are handed over. Here are a few things to avoid during the home buying process to assure your transaction goes as smoothly as possible:
  • Don’t make an expensive purchase. Before you close on your Chicago home loan, it may be tempting to order that new sofa for your soon-to-be living room, but it’s best to avoid making major purchases such as furniture, cars, appliances, electronic equipment, jewelry, or vacations until after the closing. Financing that furniture with a store credit card or even one of your own credit cards could jeopardize your credit worthiness and qualification of your Chicago home loan. Using cash to purchase big items can also create a problem because many banks take into consideration your cash reserve when approving your mortgage.
  • Don’t get a new job. Lenders like to see a consistent job history. Generally, changing jobs will not affect your ability to qualify for a chicago home loan – as long as you are in the same line of work. But for some people, getting a new job during the chicago home loan approval process could cause some concern and affect your application.
  • Don’t switch banks or move money around. As your lender reviews your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds, and other liquid assets. To eliminate potential fraud, most Chicago home loans require a thorough paper trail to document the source of all funds. Changing banks or transferring money to another account – even if it’s just to consolidate funds – could make it difficult for the lender to document your funds.
  • Don’t disregard your lender’s requirements. You may have been pre-approved for the Chicago home loan but your work with the lender is far from over. In order to process your loan, you need to meet certain requirements. Your lender will need copies of your bank statements, W2s, and other paperwork. It is up to you to get it to him or her as soon as possible. Failure to submit certain qualifying documents could cause you to lose your loan and the financing you need to buy your home