Applying for a mortgage, avoid these situations!
During the mortgage process, lenders will check and recheck your credit right up to closing! It is very important when applying for a mortgage to avoid these all the way through closing and funding!
1. Changing jobs, becoming self-employed or quitting your job
Changing employers could mean delays due to employment and salary verifications. Of course, you shouldn’t ignore a great career opportunity. It means only that optional moves should wait.
2. Making a big purchase (Buying a new vehicle, planning a cruise, buying furniture, even if paying by cash)
Your debt-to-income ratio is an important factor when being considered for a loan. If you add to your debt by purchasing a car or boat, you risk exceeding the ratio that your lender finds acceptable.
3. Opening credit accounts
You might apply for a credit card so you’re ready to buy furniture for your new house. But similar to taking on new debt, applying for a new credit account can harm your mortgage approval. The credit inquiry necessary for the new account will ding your credit score a few points, and the lender might wonder just how much you plan on spending with that new account.
4. Using your charge cards excessively or letting your accounts fall behind
5. Spending money you have set aside for closing
6. Omitting debts or liabilities from your loan application
7. Originating inquiries into your credit
8. Making large deposits without first checking with your loan officer
9. Changing bank accounts
10. Co-signing a loan for someone
Part of the mortgage process is a final check to ensure you can afford the loan. Neither you nor the lender wants the payments to be a struggle, so don’t give the lender any reason to doubt your creditworthiness.
Additionally, these are things you lender needs to know about immediately!
1. You are thinking about purchasing a new automobile
2. You have investment property liabilities
3. You have farm expenses or significant tax deductions
4. You claimed self-employment or business expenses
5. You are divorced or you plan on getting divorced
6. You are currently paying child support and/or alimony
7. You have pending medical expenses
8. You owe the IRS back taxes
9. You plan on purchasing a home with cash
10. You must sell a home before purchasing a new home
11. You will be changing jobs
For more info on the mortgage process and tips for comparing lenders, please contact me anytime, seven days a week!
Providing Solutions Because…Your Move Matters!
Michael L. Brownstead
First Sergeant, U.S. Army (Retired)
ABR, GRI, MRP, SRS, REALTOR
Keller Williams Realty
1002 Raintree Cir., Ste. 100, Allen, TX 75013