Here are five things to avoid after applying for a mortgage:
1. Don’t deposit large amounts of cash
Before making any large deposits into your bank account, consult with your loan officer. Lenders need to source your money and cash isn’t very traceable.
2. Don’t change jobs or the way that you are paid at your job
Changing jobs can impact your approval. Your employment history and income are how lenders determine if you can make your monthly mortgage payments.
3. Don’t apply for new credit or co-sign a loan for anyone else
When your credit is run by different organizations, it will have an impact on your FICO score. A lower credit score can affect your eligibility for approval
4. Don’t make large purchases such as buying a new car
Adding new debt such as purchasing a new car can increase your debt-to-income ratio, which in the lender’s eyes makes for a riskier loan.
5. Don’t switch bank accounts
Lenders have to trace your assets and having consistency with your accounts makes this much easier.
You want to experience a smooth homebuying process. It is a best practice to contact your lender before making any significant financial decisions. Your lender is there to help guide you and increase your chances of getting approved for a loan.