10 DO NOTS
10 DO NOTS:When Applying for a Mortgage
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 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
mortgage professional)
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.
More Education Posts
Benefits of working with a Loan Professional | Find a Loan Officer
Information provided on loan products is for informational and educational purposes only. Every loan product has eligibility guidelines, exceptions, exclusions and inclusions. To find out which loan product fits you best you should consult a Mortgage Loan professional for tailoring your loan to your needs and your situation. FDM is qualified for all these loan products and more, including grants and other unique products.
We would be honored if you pick us to be your Lender.
Visit our Ratings page to learn more about us and how our clients evaluate our service!
Apply now to get a professional review of your home financing needs!