7 Things You Should Not Do When Applying For A Mortgage

There are certain things you should avoid before and during the mortgage approval process.  Borrowers can be their own worst enemies when trying to obtain a mortgage.  Here are some helpful tips.

1. Don’t try to consolidate bills before speaking with a lender!  A trained loan officer will be able to assess your credit obligations and make recommendations.
2. Don’t move assets around.  The account activity could be misinterpreted and cause complications.  The lender will verify each account as it exists.  You can combine the accounts after closing if you choose.
3. Don’t change jobs!  You will be required to provide an accurate employment history including any gaps in employment.  A new job may have a probationary period that must be completed before your lender will include that income.
4. Don’t run a credit report on yourself.  This will show as an inquiry which will require a written explanation.
5. Don’t buy or lease a new auto.  This may result in a change in your credit score ass well as a change in your debt-to-income ratio.  A new large payment could prevent you from qualifying.
6. Don’t buy new furniture or major appliances for your home.  This may also impact your credit scores.
7. Don’t send original documents to your lender.  Losing important information can be costly and could take weeks to obtain duplicates.  This could result in lengthy delays in the approval process.

When purchasing home or refinancing always remember to get everything in writing and pay attention to detail.  Lastly, there are no bad questions.  Getting a mortgage doesn’t have to be complicated, most of the time potential problems can be quickly resolved with open and honest communication between you and your professional mortgage planner.

Note: Soliciting rate information without providing your lender specific income and credit data may be risky.  When quoting interest rates, most lenders assume certain property, credit and income characteristics.  If your situation is different rates could vary dramatically.  Don’t assume anything.

Content by Astonis