Post-Application Pitfalls: Common Mortgage Mistakes to Dodge

If you’re getting ready to buy a home, it’s exciting to jump a few steps ahead and think about moving in and making it your own. But before you get too far down the emotional path, there are some key things to keep in mind after you apply for your mortgage and before you close. Here’s a list of things to remember when you apply for your home loan.

Don’t Deposit Large Sums of Cash

Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any cash into your accounts, discuss the proper way to document your transactions with your loan officer.

Don’t Make Any Large Purchases

It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, even for furniture or appliances.

Don’t Cosign Loans for Anyone

When you cosign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count them against you.

Don’t Switch Bank Accounts

Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.

Don’t Apply for New Credit

It doesn’t matter whether it’s a new credit card or a new car. When your credit report is run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower credit scores can determine your interest rate and possibly even your eligibility for approval.

Don’t Close Any Accounts

Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those parts of your score.

Do Discuss Changes with Your Lender

Be upfront about any changes that occur or you’re expecting to occur when talking with your lender. Blips in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.

Bottom Line

You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.

70 Properties
Page 1 of 6
$542,731
Neighborhood: Sunstone At Wellen Park
3
Beds
2
Baths
1,787
Sq.Ft.
2024
Year Built
8
Days on Site
T3505214
MLS
$442,681
Neighborhood: Renaissance At Wellen Park
2
Beds
2
Baths
1,507
Sq.Ft.
2024
Year Built
9
Days on Site
T3504869
MLS
$447,817
Neighborhood: Sunstone At Wellen Park
2
Beds
2
Baths
1,501
Sq.Ft.
2024
Year Built
9
Days on Site
T3505037
MLS
$576,990
Neighborhood: Wysteria Wellen Park Village F-4 Replat
3
Beds
2
Baths
1,860
Sq.Ft.
2024
Year Built
9
Days on Site
T3499566
MLS
$505,954
Neighborhood: Sunstone At Wellen Park
3
Beds
2
Baths
1,765
Sq.Ft.
2024
Year Built
9
Days on Site
T3505069
MLS
$565,990
Neighborhood: Wysteria Wellen Park Village F-4 Replat
3
Beds
2
Baths
1,682
Sq.Ft.
2024
Year Built
9
Days on Site
T3505076
MLS
$513,907
Neighborhood: Brightmore At Wellen Park
3
Beds
2
Baths
1,754
Sq.Ft.
2023
Year Built
17
Days on Site
T3503169
MLS
$409,563
Neighborhood: Renaissance At Wellen Park
2
Beds
2
Baths
1,507
Sq.Ft.
2024
Year Built
24
Days on Site
T3501288
MLS
$399,910
Neighborhood: Sunstone At Wellen Park
2
Beds
2
Baths
1,501
Sq.Ft.
2023
Year Built
32
Days on Site
T3499172
MLS
$325,000
Neighborhood: Wellen Park Golf & Country Club
2
Beds
2
Baths
1,120
Sq.Ft.
2023
Year Built
36
Days on Site
N6130569
MLS
$586,997
Neighborhood: Wellen Park Golf & Country Club
2
Beds
2F11/2
Baths
1,850
Sq.Ft.
2023
Year Built
37
Days on Site
A4589618
MLS
$506,899
Neighborhood: Sunstone At Wellen Park
3
Beds
2
Baths
1,787
Sq.Ft.
2024
Year Built
43
Days on Site
T3496696
MLS

Post a Comment