Increasing Your Chances of Qualifying for a Loan

Filed under: Qualifying for a Mortgage Loan

qualifying for a loanWhile banks are definitely back into the mode of mortgage lending, there are still guidelines in effect that require home buyers to document specific portions of their financial and credit histories.  Basically, banks want to make sure that people can repay the money they borrow which, in all honestly, is perfectly logical.

Earlier this month we talked about some mortgage tips for possible home buyers. In addition to those tips, here are some other steps prospective buyers can take to increase their chances of being approved for a mortgage.

1. Don’t Change Jobs.

Changing your job may create some complications for loan qualification. And, if you change your job, the underwriters will have to re-verify your employment and also have to gather additional paycheck stubs to secure financing.  Definitely do NOT change jobs in the middle of your escrow.  Put it off until after you move, if possible.

2. Don’t Switch Banks or Move Your Money.

If you move your money, it may cause complications in the verification process. If you open a new account and large deposits are made during the last six months, it will require an explanation and can actually delay the closing of the loan.

3. Don’t Make any Major Purchases.

Try to hold off on buying anything major, such as a new car, a multi-media entertainment center, or new furniture or appliances for your possible new home. Making a large payment may affect the amount of home you may qualify for and can even make your loan approval more difficult.  This is even more an issue if you finance those purchases with a credit card or directly with the store where you purchase them.

4. Do Ask About Paying off Bills.

We can advise you if it is necessary to pay off bills to help you qualify for a loan. We can show you the best way to pay off bills and make sure the appropriate evidence is gathered and available to show your bills have been paid in full.

5. Do Conduct a Thorough Audit of Expenses.

In order to help determine the right amount of financing, it is usually best to assess bills and calculate other monthly expenses. When you are applying for a loan, we can add these expenses to the proposed mortgage payment to make sure too much debt is not taken on.

If you have any questions about qualifying for a loan, I can guide and educate you to ensure the process runs smoothly and efficiently so that you obtain the loan best suited for your finances and lifestyle. Please don’t hesitate to give me a call so we can discuss all of the possibilities.


Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316
For questions or concerns please email