Tips to Keep in Mind When Applying for a Mortgage
Don't have your credit pulled by another Broker or Lender
The lender will often pull your credit again right before financing. If the lender sees that other brokers or lenders have pulled your credit the lender views this as credit-seeking and that can put your funding in jeopardy.
Don't Apply for New Credit
The lender calculates your debt based on the amount of credit you have. If you are applying for new credit, the obvious assumption is that you intend to use it. Don’t get any new credit until the closing date is passed.
Don't Close Any Old Credit Accounts
Credit is not a bad thing….unless you are having a hard time managing it. Old credit shows a long history of being able to handle credit. Lenders like that.
Don't Move Your Money Around Without a Paper Trail
When you settle with the bank on the contract of the mortgage, the lender will require bank statements showing your saved money. They look at the history along with the balance. If there are any unusual deposits, you will need to explain where the money comes from. Be prepared to show a paper trail.
Don't Increase Your Debts
The lender always looks at your debt to income ratio. If you increase your debt, you can risk going over the maximum amount of debt compared to your income.
Don't Skip a Payment or Make a Late One
Credit is negatively affected by late payments and the lender will ask about them even if there is only one late payment. Schedule your monthly payments automatically to be withdrawn so that you never show a late payment on your credit bureau.
Don't Buy a Car
It’s amazing how many people buy a new car…. just before they go to buy a new house! Resist the urge. While we are at it don’t finance another house, couch, musical instrument or ANYTHING ELSE!!! Wait until AFTER closing.
Don't Change Jobs
Your financing will be based on secure employment, getting a new job (and usually being placed on probation in a new job setting) will disqualify you from financing. WAIT until after closing.
Don't Spend Your Savings
Make sure your savings remain the same. Right up until closing, the lender will want to see that your file is as it was when first applying for the mortgage.
Here's some stuff Don't have your credit pulled by another Broker or Lender
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