8 Mistakes to Avoid During the Home Loan Process

8 Mistakes

For first time home buyers applying for a home loan can be a daunting task. Your finances will be meticulously examined by a mortgage underwriter as you await the anticipated day of closing. Even if you have been pre-approved for a home loan there are mistakes that you could make to disqualify you. It is important that all home buyers applying for a mortgage loan are aware of the following mistakes to avoid.

#1 Do not change jobs or quit your job.

#2 Do not co-sign for anyone on another loan.

#3 Do not incur late fees or miss any current payments.

#4 Do not purchase anything else on credit such as a car or new furniture for your new home. Wait until after the close of your home to buy that new furniture.

#5 Do not make any sizable purchases on current lines of credit.

#6 Do not close out any current credit cards. Believe it or not this can actually be dangerous if you have debt. Closing out a credit card can drastically change your credit score for the worse.

#7 Do not open a new credit card.

#8 Do not accept large monetary gifts without first talking with your mortgage broker. Large deposits will raise concern by the underwriter unless proper documents are completed to show that the money is not a personal loan from a family member or friend.

 

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