Going through the mortgage application process can be a bit daunting, especially for first time homebuyers. There are many documents to obtain, many forms to fill out, and many obstacles that could prevent your application from getting approved and cleared-to-close.
So what should you avoid doing while you’re going through the mortgage process? Here are 8 things you can avoid to help everything with your mortgage go as smoothly as possible:
1. Don’t buy a big ticket item. Large purchases can affect your debt to income ratio, which is a factor used to determine your eligibility for your mortgage. This is why purchasing a big-ticket item is generally not a good idea during the mortgage process.
2. Don’t quit your job. You shouldn’t leave your job while applying for a mortgage – a change in your employment status can affect your loan approval. If you do have a sudden change in your employment, you should notify your mortgage consultant immediately.
3. Don’t open any new credit cards. Opening a new line of credit may seem like a great option when you’re planning out what to purchase for your new home, but it’s best to resist the urge! You should not have any new lines of credit (or credit checks) occurring while your mortgage application is being processed.
4. Don’t forget to pay your bills. Your offer was accepted on a new home – great! However, that doesn’t mean you can ignore your regular responsibilities and your current bills. Underwriters will look into your credit history to ensure that you are still paying everything on time.
5. Don’t ignore questions from your mortgage consultant. It may feel like they’re asking for a lot, but trust us when we say that your mortgage consultant’s questions and requests shouldn’t be ignored. They are trying to make sure you close on time, that they have all necessary documentation, and that you get the final approval to purchase your home. Please do your best to work with them, get their questions answered and documents scanned over in a timely manner.
6. Don’t make a large deposit into your account. While it may seem like a great idea to save your pennies and drop them into your savings account, large deposits outside of your standard paycheck are typically not considered liquid assets because the source can’t be verified. If the deposit is a gift, there is another process to go through – along with more forms you will have to fill out.
7. Don’t co-sign on any loans, or take out any other loans. You shouldn’t take out any loans or co-sign on anyone else’s loan during the mortgage application process.
8. Don’t change your banking institution. Even if you’ve been looking to change banking institutions for a while, don’t jump ship just yet. You shouldn’t be switching your bank while taking out a mortgage.
If you have questions about the mortgage process, please reach out to one of our knowldgeable Consultants at HUNT Mortgage today!