Avoid These Common Mistakes After Applying for a Mortgage

Man paying mortgage, symbolizing home ownership costs and savings

So, you’re about to get your home ownership—this is simply a fantastic idea. But hold your horses! There are a few things you should keep in mind after applying for a mortgage and closing the deal.

Watch Out for Big Cash Deposits

Your lenders need to know exactly where your money comes from, but cash is hard to track. Therefore, speak to your loan officer before hyper-loading your accounts with money to understand how best you can document transactions.

Say No to Splurges

Not only shopping but also money matters related to homes could spoil everything concerning loans. Some major purchases might be frowned upon by lenders. If you increase obligations like new loans or debts, it makes it riskier for them to trade. It means that the debt-to-income ratio rises as well. So, if you have big plans like buying furniture or getting fancy gadgets used in a kitchen, stay away until this transaction is appropriately done.

Don’t Cosign Any Loans

By co-signing a loan, you become responsible for ensuring its success and repayment, too. Additionally, co-signed loans also raise the debt-to-income ratios. Besides, even if you are not paying off someone else’s obligation, the lender will look at it as well as consider it against yours.

Keep Bank Accounts Stable

If all accounts have uniformity among them, then assets will be more easily monitored by lenders throughout those accounts. Do not start transferring funds before speaking to your credit officer.

Steer Clear of New Credit

FICO scores can decrease by applying for additional credit, like a brand-new credit card or fancy cars. Other financial institutions may check on multiple credits that may affect rates of interest or even eligibility requirements while considering applications. Therefore, do not think of additional borrowing during this crucial period.

Don’t Shut Down Accounts

Shutting down accounts does not lower the risks that you pose as a lender to your lenders. The two may be affected by the credit score, where there are aspects such as length and depth of credit history plus credit utilization ratio. By closing these accounts, both of which may suffer in terms of these respects.

Keep Open Communication with Your Lender

If change has occurred or is about to happen – within your income, assets, or even credit – let your lender know about it. Disclose them to the lender for discussion so your home loan can still proceed unobstructed through this process. When your job or employment status has recently changed, inform your lending company. On top of everything else, have a continuing financial chat with your loan officer before you make any material money moves.

Your Home-Buying Journey Just Got Easier

The last thing you would want is anything big extravagance in spending, rearrangement of funds, and upheaval of life without first alerting you to the experts who will tell you what influence they might have on your home loans. If you need assistance from an expert real estate resource, you always have Homes 2 Move You at your back!