November 26, 2024
Get My Fall Moving Guide for Homebuyers and Sellers
Learn what to avoid post-mortgage application with our four-step guide.
When you apply for a mortgage, your financial activity before and after applying will be scrutinized, so you have to be careful with what you do or don’t do to ensure that the process is successful. That’s why today, I will share four critical mistakes you must avoid after applying for a mortgage to secure your dream home:
1. Don’t change bank accounts. Changing bank accounts can be a big mistake. Your lender will need to review your bank statements and financial records to verify your financial stability. If you switch accounts, it can complicate this process and potentially delay your mortgage approval. Keep your existing accounts stable and accessible.
2. Don’t apply for new credit cards or close existing accounts. Avoid applying for any new credit cards or closing any existing accounts. Doing so can negatively impact your credit score, which is critical for mortgage approval. Instead, focus on paying your existing credit card bills on time and keeping your accounts open to maintain a positive credit history.
"When you’re applying for a mortgage, it’s crucial to plan your financial decisions."
3. Don’t make large purchases or transfers. Refrain from making any large purchases or financial transfers, such as buying a new car or making significant investments. These actions can alter your debt-to-income ratio, which is a key factor lenders consider when approving a mortgage. Large financial changes can disrupt your mortgage application process and potentially derail your home purchase.
4. Don’t cosign on loans. Avoid cosigning on any loans for anyone else. Cosigning can negatively affect your credit score and your ability to qualify for a mortgage. If the primary borrower misses payments or defaults, it will impact your credit and hinder your mortgage approval process, especially if you’ve already started the loan application.
Applying for a loan can sometimes be a lengthy and complicated process, so it’s essential to check in with your loan officer before making any financial decisions. They can provide guidance and ensure that your actions won’t negatively impact your mortgage approval.
For more tips on getting a loan and buying a home, or if you’re looking for a reliable lender, reach out to the most trusted source in the industry, Crosson Co Real Estate. Just call 843-667-0233 or visit our website at www.crossonandco.com. We look forward to helping you!
