Top 10 Actions To Avoid When Applying For A Mortgage

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When applying for a mortgage, it's important to know what to avoid doing when applying for a home loan. Here are the top 10 actions that could put your loan application - and your dream home - at risk.


1. Changing Jobs

A lender is going to want to make sure that you have a stable income and that you can afford to pay your monthly mortgage every month so hold off on making career changes until after you close escrow. 


2. Opening and Closing Lines of Credit

Opening or closing credit accounts can negatively impact your credit score. This may put your chances of getting approved at risk. You can pay off account balances but keep your credit cards open. 


3. Using Credit Cards Excessively

Do not add to your debt!


4. Spending Your "Closing Cost" Money

You want to make sure you have your money for your "closing cost" ready when it's time to send it. 


6. Making Large Deposits or Withdrawals

Anything out of the ordinary, including large deposits or withdrawals can raise a red flag. If you've received a gift for your down payment, the loan officer may need to source the funds and the nature of the deposit. To avoid problems, talk to your loan officer first to find out the best way to tackle this. 


7. Making Late Payments

If your history shows that you cannot pay your bills on time, lenders will assume that you won't pay your mortgage in a timely manner either. Late payments could affect your ability to get pre-approved for a year!


8. Initiating Credit Inquiries

Recent credit inquiries on your credit report tell a lender that you are currently shopping for new credit. This may be meaningful to a potential lender when assessing your credit worthiness.  


9. Co-signing A Loan For Others

By co-signing, you become partially responsible for the debt you co-sign for. If the borrower cannot keep up with the payments and defaults, your credit score could dip substantially.


10. Changing Banks Accounts

Changing banks means having to go through the whole process again from providing a new set of bank statements to sourcing funds to make sure that assets have been in your account for certain amount of time. It's not worth the trouble!


Note: Angela Carpio is a Realtor serving Riverside, San Diego and Orange County.


Angela Carpio, Realtor

619-228-5034

Coldwell Banker ABR

Lic. #01967762

AngelaCarpioRealtor@gmail.com

http://www.angelacarpiorealtor.com/

#angelacarpiorealtor





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