Steer Clear of These Common Pitfalls Post Mortgage Application

Congratulations on taking the exciting step towards homeownership! As you embark on this journey, it's essential to be mindful of potential pitfalls that can impact your mortgage application. Here's a guide to avoiding common mistakes after applying for a mortgage, ensuring a smoother path to closing day.
 

1. Don't Deposit Large Sums of Cash
Lenders need transparent sourcing of your funds, and cash transactions can complicate this process. Before making any substantial cash deposits, consult your loan officer to ensure proper documentation.
 

2. Refrain from Making Large Purchases
It's not just home-related expenses that can affect your mortgage eligibility. Any significant purchases contribute to higher debt-to-income ratios, potentially jeopardizing your loan approval. Resist the urge to make large expenditures, even for furniture or appliances.
 
3. Avoid Cosigning Loans for Others
Cosigning for a loan introduces financial accountability, impacting your debt-to-income ratios. Even if you're not the primary payer, lenders consider the obligation, which may affect your mortgage qualification.
 
4. Steer Clear of Switching Bank Accounts
Consistency among your accounts aids lenders in sourcing and tracking your assets. Before making any account transfers, discuss the matter with your loan officer to ensure a smooth process.

5. Refrain from Applying for New Credit
Whether it's a credit card or a car loan, new credit applications impact your credit score. Multiple credit checks can influence your interest rate and approval eligibility. Maintain stability in your credit report during the mortgage application process.

6. Keep Existing Accounts Open
Contrary to popular belief, closing accounts doesn't necessarily improve your creditworthiness. Your credit score considers the length and depth of your credit history, along with your credit usage percentage. Closing accounts can negatively impact both aspects.
 
7. Discuss Changes with Your Lender
Open communication with your lender is crucial. Inform them promptly about any changes in income, assets, or credit. Transparency ensures that your home loan remains on track, especially if there are recent alterations in your job or employment status.
 
In Conclusion: Consult Your Mortgage Lender!
Your dream home purchase deserves a seamless process. Before making significant financial decisions, consult your lender, a qualified professional who can guide you on how your choices may impact your home loan. Your lender is a valuable partner on your journey to homeownership, providing insights for a successful and stress-free experience. Remember, a well-informed borrower makes confident decisions!

Wishing you a smooth and successful homebuying journey!