Mortgage mistakes can be costly. If you want a successful and timely closing, avoid making these 10 mistakes when you are in the mortgage process. 

 

  1. Don’t buy a big-ticket item: These are items such as a new car, a boat, expensive furniture. Save these kinds of purchases until after you have securely closed your mortgage loan.
  2. Don’t quit or change jobs: Changing jobs can reflect instability in a lender’s eyes. Some are okay with it if you provide a letter of explanation and work the new job for a certain amount of time. If you can’t wait to change your job then speak with your Mortgage Broker first, to see what the lender will require. 
  3. Don’t pay your bills late: Late payments lower your credit score and lenders not only monitor your credit during the mortgage process, but they may also re-pull your credit before closing. 
  4. Don’t open or close any lines of credit: Both may have a negative impact on your credit score. 
  5. Don’t ignore questions from your Lender or Mortgage Broker: Not getting back to your Lender or Mortgage Broker in a timely manner will delay your loan closing. 
  6. Don’t let anyone else pull your credit: After you have found the Mortgage Broker you want to work with, hold off on any additional credit pulls until after you close. Again, credit inquiries lower your credit score. 
  7. Don’t make large deposits other than your paycheck: This is especially true for large deposits of cash. If you have to deposit money then expect to explain and source the deposit with a letter. If the deposits were a gift, you will also need a gift letter and source of funds from the donor.
  8. Don’t co-sign another loan with anyone: Co-signing another loan will increase your debt-to-income ratio and holds you legally responsible for that debt. 
  9. Don’t change bank accounts: If you are compelled to change, you will have to provide statements for both accounts and source all funds.
  10. Don’t take out any payday advance loans: This reflects a lack of money management which is something you do not want to convey when applying for a mortgage.

 

Homebuyers can now skip the agents and use fsboHandshake to close on their new home.