When applying for a mortgage, it’s important to be careful about your financial decisions to avoid jeopardizing your chances of approval. Here are some things you should not do when applying for a mortgage:
- Don’t apply for new credit: Every time you apply for new credit, it can temporarily lower your credit score. Avoid applying for new credit cards or loans while you’re in the process of applying for a mortgage.
- Don’t make large purchases: Making large purchases, such as a new car or expensive furniture, can increase your debt-to-income ratio and affect your ability to qualify for a mortgage. Wait until after your mortgage has been approved before making any big purchases.
- Don’t change jobs: Lenders prefer borrowers who have a stable employment history. If you’re considering changing jobs, it’s best to do so after you’ve secured your mortgage.
- Don’t miss payments: Late payments can have a negative impact on your credit score and your ability to get approved for a mortgage. Make sure you continue to make all of your payments on time, including credit card payments, car payments, and other bills.
- Don’t close credit accounts: Closing credit accounts can affect your credit utilization ratio and lower your credit score. It’s best to keep your credit accounts open, even if you’re not using them.
- Don’t withhold information: Be honest and upfront with your lender about your financial situation. Failing to disclose important information can result in your mortgage application being denied or delayed.
By avoiding these common mistakes, you can help ensure a smoother and more successful mortgage application process. Don’t hesitate to reach out to a loan officer with Valiant Mortgage Group to help navigate the home buying process.