Applying for a mortgage can be really intimidating, but I’m here to tell you, you can do it. Let’s go over a few things to avoid during the process to keep you from making an expensive mistake.
Don’t make any big unusual deposits without talking with your lender about how to document it properly. They need to be able to see where the money came from, and want to keep a paper trail.
Next, once you are under contract, hold off on buying that brand new furniture or shiny new appliance on credit. because it can disqualify you from your loan due to a higher debt-to-income ratio. And while you’re at it, don’t co-sign any loans for anyone else, even if you’re not the one making the payment. It still counts against you.
It’s also important to avoid applying for any new credit, whether it’s a credit card or a car loan. These can have a big impact on your FICO credit score, so it’s best to hold off until after the mortgage process is complete.
When it comes to your credit history, try to avoid closing any accounts. Lenders like to see a long and healthy credit history, so keep those accounts open.
Lastly, make sure you have open and frequent communication with your lender regarding any changes in your income or employment status. This will keep everyone on the same page and ensure a smooth process.
If buying a home is on your mind give me a call. We’re here to make your home buying journey a success! I’m your community market leader Sherri Echols, a helping hand for a happy home.
