Mortgage Application DON’Ts
Applying for a mortgage is a big step not matter what stage of life you are in, whether starting out with your family into your first home, or moving across state lines for the new job. As this step is so monumental in actually purchasing the property the room for mistakes in next to none and can end up taking even longer. This article is aimed at helping you know what NOT to do in the case of applying for a mortgage. Without the muss or fuss you should be moving in quicker then you realize.
Avoid Lifestyle Changes
When evaluating your file for a mortgage a lender wants to see proof of your responsibility both financial and otherwise. After all the lender wants to be absolutely sure you can pay the amount back in full.Displaying erratic behavior, especially when it comes to money, is a big red flag for lenders. In their eyes it could seem eccentric or irresponsible. To be fair, its not just decreases in income either, sudden increases are just as suspect as the lender wants to see a steady flow of income not spikes and valleys.
To be sure that you are in the best position available for a mortgage, make sure your income is steady for a few months before and during the process of being approved. Anything that could be attributed to a lifestyle change would be better held off until you are sure you are approved.
Avoid Credit Inquiries
When looking into a mortgage and especially when applying it is pivotal you attempt to leave your credit at the same level throughout the process. Opening and closing credit cards can be disastrous in this situation as a new credit card will add an inquiry to your credit score and closing the card will lower your available funds to pay and and all bills associated with your file. As such, when applying for a mortgage it is best to keep your bills paid on time, and regularly. This convinces the lender once again of your financial stability.