Applying for a mortgage requires that you do certain things, such as check your credit, get your financial papers in order, and save as much money as possible for your down payment. But there are also several things you should NEVER do when applying for a mortgage – things that could potentially cause you to lose your mortgage mid-application.
To ensure you don’t sabotage your mortgage approval, be sure to avoid the following five things.
- Don’t make any big purchases. Hold off on buying that new car or boat until after your loan has closed. Even if you feel comfortable with all the new payments, your mortgage lender may determine that you are overextending yourself.
- Don’t apply for new credit. It’ll lower your credit score. Keep your credit report as stable as possible when applying for a mortgage. Your debt-to-income ratio is a big factor in your lender’s decision. Keep this percentage stable by not taking on new credit.
- Don’t co-sign any loans. Co-signing a loan for a family member is certainly generous, but it also makes you liable for the debt if the main borrower defaults. These co-signed loans act just like a new credit inquiry for you.
- Don’t miss payments. Your goal is to show your mortgage lender that you are a good risk for them. Therefore, make every effort to ensure you pay everything on time.
- Don’t make big life changes. When applying for a mortgage, keep your life as stable as possible. Don’t start a new career with a new employer, start your self-employment venture, or quit your current job (no matter how much you may dislike your current position). Basically, don’t do anything that could make you look like a higher risk to lenders.
Remember, when you’re applying for a mortgage, your lender wants to see financial stability. In fact, it’s one of their biggest criteria for deciding to lend money. Therefore, don’t jeopardize your mortgage by doing anything on this list. Wait until after your mortgage is closed and you have the keys to your new home in your hands before making any major financial decisions.
Is applying for a mortgage in your future? As mortgage bankers, we can help you make the best decision for your needs.
When you’re ready to apply for a mortgage or refinance an existing one, contact us at 707-254-8891 or [email protected]. We can also direct you to the perfect real estate agent to help you.
Have Questions, Reach out to me for more information.
Call me at (707) 254-8891
Hilda Hensley Branch Manager – Mortgage Advisor
NMLS id 280206
Benchmark Mortgage
Ark-La-Tex Financial Services, LLC NMLS id 2143
