It isn’t news that the economy is down, or that banks are being very tight with lending. But it may come as surprise to know that most banks will look for any reason not to close a deal—so don’t give them one. If anything deviates from the norm, some mortgage lenders are quick to delay a closing, keeping you from enjoying your Chicago home. If waiting, paperwork and stress isn’t what you had in mind, adhere to the following rules outlined to me by Sean Lowry of LaSalle Pacor Mortgage Group. They will make the process a lot easier, and you’ll be the happy owner of a Chicago home in no time.
Tips from Sean
- Provide your lender with copies of your bank statements (savings and checking), investments and other liquid assets.
- Canceled checks and deposit receipts need to be readily available. Any delay may slow the process.
- Don’t move money from one account to another.
- Even if you have the money, avoid making large purchases before trying to buy a home (jewelrey, car, vacation, etc).
- Affects your debt-to-income ratio
- Financial status looks negative to lenders
- A job change can be a warning signal to vendors, unless it comes with more money.
- Hourly workers should provide adequate documentation for consistent overtime and bonuses over a two-year period.
- New jobs that are commission based look bad to lenders, because it makes you look unstable.