5 Things To Avoid While In The Mortgage Lending Process

Activities to Avoid when you are looking to purchase a new home

1.) Applying for New Credit – Once you have begun the preapproval process for a home mortgage – applying for new credit can temporarily lower your credit score and possibly affect your score to the point of not being able to qualify for what you previously did.

2.) Changing Jobs – Making an employment change during the mortgage lending process may also negatively impact your purchasing opportunity.

3.) Extreme Utilization of Credit Cards or being late/missing credit card payments – Seemingly a small factor in the equation but it is not. Minimize the use of credit cards during the home buying process and make extra effort to ensure any loan or credit cards payments are submitted timely.

4.) Changing Bank Accounts – Similar to changing employment during the home buying process – this is another NO NO! Stability is key so let’s get your purchase closed prior to making any real changes to bank accounts.

5.) Large deposits OR withdrawals – All monies have to be accounted for and large/uncommon deposits to your account may raise a red flag with the mortgage lender and cause unneeded stress and documentation that could slow the process. Large withdrawals are another bad bad idea. Most often, the lender has verified your bank account balances and large withdrawals may be crippling to your purchasing opportunity.

Summed up? Remember, that during the home buying process, that should be your primary focus. All other things such as purchasing of furniture or a new vehicle, change of employment can all take place after you are settled in your new home. Stay focused and I look forward to seeing you at the closing table!