Top Things Not To Do When Applying For A Mortgage Top Things Not To Do When Applying For A Mortgage
When you’re starting your homebuying journey, the pressure of qualifying can be intimidating. However, there are things you can control throughout the process to increase your chances for qualifying and avoiding potential pitfalls.
We’ve put together a quick guide of things NOT to do along the way:
- Do NOT change your job. Lenders look for stability and verify all employment just before your mortgage is scheduled to close.
- Do NOT have your credit run throughout the process. This could lower your credit score and affect the interest rate you receive.
- Do NOT have any of your family members, friends, or colleagues pay or write a check for your down payments. Gift funds need to be handled correctly. Consult your Loan Officer first before making a deposit of a large sum of money.
- Do NOT make any unusually large deposits or large transfers into your bank accounts. If you are selling stock and transferring to your cash accounts or depositing wedding gifts, for example, keep impeccable records and be prepared to document and explain every transaction. Consult your Loan Officer about proper documentation.
- Do NOT increase debt. Opening, closing, or even inquiring about opening new accounts can impact your credit score and complicate the approval process.
- Do NOT run up your credit cards.
- Do NOT open new credit cards. That also means any cards from department or furniture store accounts, and avoid opening any personal or home equity lines of credit.
- Do NOT co-sign any loans for family members, friends, or colleagues.
- Do NOT close any existing revolving accounts.
Following these steps, along with addressing any questions or concerns with your Loan Officer can help simplify the process and make your home-buying experience smooth and painless!
We’ve created a library of resources to answer some of the remaining applications you may have. Whether you are a first time homebuyer, or a returning buyer looking for a refresher, visit the links below to get up to speed on the mortgage process:
- Explore the Loan Process
- Application Checklist
- First Time Homebuyer Programs
- Home Equity Line of Credit
Have questions? Ready to start the application process? Chat with one of our Loan Officers today!
