Blog Are You Sabotaging Your Mortgage Application?
- The first.. Very important. Don’t buy anything and I mean anything large. So I had a buyer go out and buy furniture during a loan process and what that did was it added to his debt And guess what? He got declined So don’t buy a car, don’t buy furniture. No major purchases. Hold them off till after you close. So that was #1 That’s a good one because people don’t realize that when they make that purchase how it’s going to impact their.. I guess it’s not only impacting their credit score, but it’s also impacting their debt to ratio, right? it could affect a credit score but it adds to your monthly payments which could decline you so you want to be very careful about that. OK, so #1 no, no
- Don’t quit your job. That’s good advice Can you imagine that you have to tell people don’t quit your job, but it’s true again I had a buyer who quit their job just before closing because he thought well we checked the job out already So he could quit his job. Well, if you don’t have a job guess what you can’t get a home So just before closing or within 10 days The underwriters go back to your employer and make sure you’re still working. So don’t quit your job till after you buy a house. I mean that seems obvious but again worth saying, yep, but it happens. So not so obvious.
- The third thing is And this is a common mistake Don’t close any credit cards In fact don’t open any credit cards but people think that the best thing to do is let me close all my credit cards and get rid of all my debt because That sounds like a good idea. Right? Well, actually no when you close a credit card that can lower your credit score The same thing with opening credit cards that can lower your credit score. So when we start a mortgage we’re using your credit score and again, ten days before closing The underwriter will re-pull the credit score and if it drops enough, it could get you another decline so That’s #3 Moving right along.
- Tell your loan officer everything. Everything? Tell them almost everything So our underwriters or I should say underwriters in general.. They’re like the FBI They will investigate they have all kinds of third-party services and they find things out So I had a buyer who didn’t tell me that they co-signed for family members apartment in New York City How my underwriters found that out? I have no idea, but they found it out and it was about twenty five hundred dollars a month Well that became a problem. So tell them everything don’t leave things out. Almost everything Because we will find out Almost everything You’re not like the bartender and you tell them everything. no no to a mortgage, , and we don’t want to know too much OK. We don’t want to know too much
- Last but not least don’t miss any payments Make sure you keep on time with your credit card payments, your car loans even medical bills.. Verizon bills, you know your cell phones. Don’t miss any payments because again, about ten days before closing That underwriter is going to re-pull the credit score and if it drops enough, it could get you a decline or it could raise your interest rate. So you want to be careful about that So those are my five no no’s For getting a mortgage.