It’s commonly known that buying a home is one of the most expensive purchases that most people will ever make. Whether you are thinking about applying for a mortgage, are pre-qualified or even pre-approved, there are certain financial activities you want to avoid. Partaking in them could cause some major problems during the mortgage lending process and we’re here to help you avoid those bumps in the road. Don’t forget to follow Ross Mortgage on Facebook and Twitter for daily advice on everything to do with your home.
Here are three activities to avoid during the mortgage process:
1. Avoid Major Purchases. Just because you got that magic letter saying that it is okay to start looking for a new home, it doesn’t mean that you should go out and buy a new car while you are at it. Making such large purchases can make the bank consider you a higher risk than they originally thought and they can pull back the mortgage.
2. Don’t Make a Career Change. Lenders look at your stability in income and job status when they are considering you for a mortgage loan. Making a sudden change in employment can adversely affect the perception of your stability. The best possible outcome in the scenario is that you’ll be dealing with a delay in the process for a period of time — though, we would still recommend that you keep your current job and wait until you’re in your new home to make the switch.
3. Be Prepared for a Last Minute Credit Check. This is why #1 is so important. A lot of lenders will do a last minute credit check before they go to the closing. In addition to major purchases, make sure that all credit cards and other payments are made on time between the time you were approved and until the closing has taken place. Don’t even apply for a new credit card. Keep your credit as steady as it was when you applied.
The home buying process can be overwhelming, so there is no need to make it more stressful on yourself. Cover your tracks and follow these rules so that the process can be as smooth as possible in the final stages. If you’re interested in buying a home, why not see what Ross Mortgage can do for you? We’ll close your loan on time… every time… guaranteed.™ Start a loan application today at: Apply Online