What Not To Do Before Applying For A New Mortgage

Real Estate
on January 31, 2013

If you are thinking about applying for a new mortgage, there are a few things that you want to avoid doing before you apply. Getting a mortgage can be a difficult task even if you have good credit and a steady stream of income coming in. Therefore, you don’t want to do anything that may make the process any harder.

Don’t Quit Your Job

The last thing that you would want to do before applying for a mortgage is to quit your job. Any lender that you ask for a loan is going to want to see that you are employed and make steady money. When you do apply for the loan, make sure that you have a recent paycheck available for income verification purposes.

Don’t Apply For Any New Loans

There are a couple of reasons why you don’t want to do this. First, inquires on your credit report can lower your credit score. Secondly, you want your debt-to-income ratio to be as low as possible. Taking out a new loan will only complicate your financial situation and make it less likely that you will get a mortgage.

Don’t Miss A Payment On Any Of Your Current Loans

Missing a payment on any of your current loans can put a damper on your ability to get a mortgage. Even if you don’t take a severe hit to your credit score, lenders may not want to approve you for a loan because you have demonstrated an inability to pay your bills in a timely manner. Any mortgage lender that you work with is going to wonder if you will be late with your mortgage payments as well.

Don’t Put Money In Your Savings Account Immediately Before Applying For A Mortgage

Lenders want to be sure that you have money in your savings account on a regular basis. Therefore, it may look suspicious if you deposit a large sum of money into your bank account just before applying for a mortgage. Make sure that the money is in your account for at least 60 days before you apply.

Getting a mortgage is a complicated and tricky process. You want to make sure that you are not doing anything that will make the process even more complicated for yourself. Therefore, you want to start planning for the mortgage process months before you actually apply for the loan.

Found in: Real Estate
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