During the mortgage process, lenders will check and recheck your credit right up to closing! It is very important when applying for a mortgage to avoid these situations all the way through closing and funding!

when Applying for a mortgage, avoid these situations
When applying for a mortgage, avoid these situations
Changing jobs, becoming self-employed or quitting your job

Changing employers could mean delays due to employment and salary verifications. Of course, you shouldn’t ignore a great career opportunity. It means only that optional moves should wait.

Making a big purchase (Buying a new vehicle, planning a cruise, buying furniture, even if paying by cash)

Your debt-to-income ratio is an important factor when being considered for a loan. If you add to your debt by purchasing a car or boat, you risk exceeding the ratio that your lender finds acceptable.

Opening credit accounts

You might apply for a credit card so you’re ready to buy furniture for your new house. But similar to taking on new debt, applying for a new credit account can harm your mortgage approval. The credit inquiry necessary for the new account will ding your credit score a few points, and the lender might wonder just how much you plan on spending with that new account.

Using your charge cards excessively or letting your accounts fall behind

This shows lenders you may have out of control/excessive spending, which scares lenders.

Spending money you have set aside for closing

Obviously not a good idea to spend that money!

Omitting debts or liabilities from your loan application

Include everything, lenders will find it when they pull your credit report!

Originating inquiries into your credit

Don’t let anyone other than your lender pull your credit during the mortgage process; your credit score will take a ding or a dent!

Making large deposits without first checking with your loan officer

It may sound like a good idea, but you must prove where the money came from!

Changing bank accounts

Bank account transaction history is important for lenders to see; it shows them how you spend your money.

Co-signing a loan for someone

Never a good idea…..ever!

Part of the mortgage process is a final check to ensure you can afford the loan. Neither you nor the lender wants the payments to be a struggle, so don’t give the lender any reason to doubt your creditworthiness.

Additionally, these are things you lender needs to know about immediately!

1. You are thinking about purchasing a new automobile

2. You have investment property liabilities

3. You have farm expenses or significant tax deductions

4. You claimed self-employment or business expenses

5. You are divorced or you plan on getting divorced

6. You are currently paying child support and/or alimony

7. You have pending medical expenses

8. You owe the IRS back taxes

9. You plan on purchasing a home with cash

10. You must sell a home before purchasing a new home

11. You will be changing jobs

Again, it is worth saying it again, when applying for a mortgage – avoid these situations! For more info on the mortgage process and tips for comparing lenders, please contact me anytime, seven days a week!

About Michael Brownstead

Brought to you by: Michael L, Brownstead, Broker-Owner, Brownstead Real Estate, LLC., 8700 Stonebrook Pkwy, Box 551, Frisco, TX 75034

Michael Brownstead is a 24-year Army Retired Veteran who has been selling real estate in Frisco, TX and surrounding communities since 2010. One of Michael Brownstead’s many specialties is assisting Veterans with their real estate needs.

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