Avoid These 5 Things After Applying For A Mortgage!
So, you have bought your dream home, your mortgage has been approved, and you are just waiting for closing your loan. You must be really excited as you will decorate your newly purchased house! However, prior to making any big investments, you must discuss with your loan officer. He can tell you whether or not your decision will affect your home loan.
Taking the wrong action after applying for a mortgage can annihilate or decrease the scopes of getting your loan closed. So, in this blog, we will discuss 5 DON’Ts which you must be aware of after applying for your mortgage loan.
1. Don’t quit your job
Since the mortgage loan is figured on your income, the lender will check your employment status again before closing the loan. If he finds you unemployed, your mortgage will possibly fall through. Quitting your job can spoil the entire mortgage procedure.
2. Don’t make any big investments
New debt comes with new investment, incorporating monthly obligations. People with new debt have more debt to income ratios – higher ratios make for riskier loans – and often qualified loan borrowers also fail to qualify.
3. Don’t close any credit account
People usually believe that having less available credit is less risky and will more possibly be approved. It’s not true. A big element of your score is your credit history’s depth and length and your entire use of credit as a percentage of available credit. Hence, closing credit accounts impacts negatively on both determiners of your score.
4. Don’t miss payments
Missing a bill payment or doing late payment impacts negatively on your credit score. A single late payment could decrease your credit score that you can’t attain your new mortgage. Make your bill payments timely, particularly when you want to acquire a mortgage.
5. Don’t deposit cash into bank accounts
Lenders should source your money and they cannot trace cash. Prior to deposit any cash amount into any of your bank accounts, consult your loan officer the precise way of documenting your transactions.
Making a mortgage secure is a big effort which takes lots of energy and time. Make sure to avoid the aforementioned 5 things to get the mortgage you have applied for. You are recommended to totally disclose and consult your plans with your loan officer before doing anything financially. Your loan officer will surely guide you through the entire procedure.
Read About : What If You Lose Your Job During Mortgage Process