There are a few common mistakes buyers make that can delay their mortgage approval or even worse, revoke it all together. The good news is that these mistakes are 100% avoidable.
DON’T PURCHASE ANYTHING ON A CREDIT CARD
Even small charges to your credit cards can increase your debt-to-income ratio, which is a major factor in you qualifying for your mortgage. Is having that COACH bag really worth losing your new house over?
DON’T MAKE ANY BIG PURCHASES
We know how tempting it is to purchase brand new furniture to go with the new house, but spending money that was put aside for your down payment, or even what the lender viewed as reserves could be the end of you having a place to store all it.
DON’T APPLY FOR NEW LINES OF CREDIT
Applying for credit lowers your credit score. Also at this time acquiring new debt simply isn’t a good idea.
DON’T MAKE ANY EMPLOYMENT CHANGES
The week before you close on your new home is NOT the best time to hand in a resignation letter or even make a move to a better paying position. Lenders look for employment stability when qualifying you for a loan. Even an upwards move during escrow can cause your loan to be denied.
DON’T MISS ANY PAYMENTS
Your credit will be checked again! If there was ever a time to watch your bills like a hawk – this is it. A single late payment or even a bounced check can cause a mortgage underwriter to rethink their plans for lending to you.