1.01.2012. by Audra McMahon
When borrowing money for your mortgage, as with everything in life, honesty is always the best policy. It is a natural human instinct to not want to share negative personal information especially when it comes to you personal finances. You must fight this urge as it will benefit you in the long run throughout the loan process.
When your complete financial records are under review, be prepared to answer even the most detailed questions about your financial life. When reviewing your paystubs if any monies are automatically garnished from your wages it is in your best interest to bring it up beforehand with your loan representative. Often times this detail is overlooked and will negatively impact your debt to income ratio quite possibly eliminating your ability to purchase your new home. Another example is a company lien being deducted from your paycheck that is not on your credit report.
On the same note, when your loan representative asks for a complete document, and you supply all pages of your divorce decree, please do not be surprised when you cannot obtain financing for a new loan when what you have stated verbally in your loan application does not match the court appointed document provided. Simply stated, being honest about your situation up front will prevent headaches, missteps and will help ensure your loan is closed on time.
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