10 Commandments of a Mortgage Application
The below ten commandments outline what not to do during the mortgage application process:
Thou shalt not make large purchases: Avoid making any large purchases on credit, such as buying a car or furniture, as it can affect your debt-to-income ratio and credit score.
Thou shalt not quit or change jobs: Quitting or changing jobs during the mortgage process can disrupt your income verification process and jeopardize your approval.
Thou shalt not apply for new credit: Applying for new credit can lower your credit score and impact your mortgage approval.
Thou shalt not miss any payments: Late payments or missed payments can negatively impact your credit score and mortgage approval.
Thou shalt not co-sign for anyone: Co-signing for another loan can impact your credit score and debt-to-income ratio, which can affect your mortgage approval.
Thou shalt not close any credit accounts: Closing credit accounts can negatively impact your credit score and debt-to-income ratio, which can affect your mortgage approval.
Thou shalt not move money around: Avoid moving large sums of money between bank accounts, as it can delay the verification process and potentially impact your approval.
Thou shalt not forget to provide requested documents: Failing to provide requested documents in a timely manner can delay the mortgage approval process.
Thou shalt not make large deposits without documentation: Large deposits without proper documentation can raise red flags and delay your mortgage approval.
Thou shalt not ignore your mortgage lender: Stay in communication with your mortgage lender throughout the process and promptly respond to any requests or questions they may have.
Want more information on this? Connect with your Mortgage Banker or contact us today.