Do’s and DON’Ts When Applying For A Mortgage Loan
Buying a home is a big deal. There is much involved in the home buying process. Approach your trusted lender ready to present them with the information and documents to help with your home loan application. This includes keeping your financial portfolio available for them to review.
Here Are The Things To Avoid After Applying For a Home Loan
DON’T make any large purchases.
This will add to your debt-to-income ratio making borrowers hesitant to loan to you or could increase your interest rate. If you are thinking of buying things, ie. furniture for your home, appliances, or a car, don’t charge them. This adds to your debt. Along with this, DON’T apply for new credit cards. This will lower your FICO score also making lenders resist loaning to you.
Although we said not to charge to or apply for new credit cards. DON’T close the current cards or accounts you have. Lenders need to see the history of your payments to determine your creditworthiness.
DO keep accounts open and DON’T switch bank accounts. DON’T deposit large amounts of cash. Lenders need a good idea of your financial personality, and cash is not easily traceable. Knowing where and how often you move money is important to them when deciding to loan you money.
Pro Tip
Don’t make any major changes in dealing with your money or accounts. Let the lender see what you have as far as income and assets and they will better be able to determine how much to loan to you and at what rate.
For any real estate questions, please contact us today!