Getting a Mortgage Loan is all about your ability to repay that loan. Even if you have a preapproval offer from a Lender it is based on an evaluation of your credit, income, debt and your assets (If you are buying a new home because you are getting married remember your spouse's credit, income, debt and assets also affect the final approval). If the value of any of those change before final approval your loan might not get approved. WHEN LENDERS REVIEW YOUR APPLICATION, THEY LIKE TO SEE CONSISTENCY IN YOUR FINANCES.
Here are 10 Things not to do when applying for a mortgage or during the Mortgage approval process
DO NOT make major purchases like furniture, appliances, jewelry, vehicles or vacations even if you are using funds from your savings because this will affect the value of your assets. If you MUST – Please advise your team at FDM prior to doing that.
DO NOT close Credit Card Accounts, even if you are not using them unless advised by your loan professional at FDM.
DO NOT apply for new credit
DO NOT Fall behind on bill payments - most late payments are reflected on your credit report.
DO NOT Pay off debts or collections (unless instructed to do so by a
DO NOT Co-Sign on another Loan
DO NOT make career Changes before or when you are in the loan process. If you MUST – Please advise your team at FDM prior to doing that.
DO NOT withdraw, Deposit or move large amount of money in and out of your bank account. Large deposits can be particularly cumbersome if you are not able to provide a paper trail for the origin of the funds and could be construed as another loan bringing down you debt-to-income ratio
DO NOT give permission to pull your credit too many times, it can hurt your credit and require more explanations
DO NOT use cash for a good faith deposit as it is difficult to verify and
might delay your loan approval
NOT SURE? ASK! ASK! and ASK Again. Your Mortgage Professional is the best person to provide any answers related to the above points.