When you’re applying for a home loan, you’re probably tempted into paying off all of your debt to make yourself look better on paper. However, you might be surprised to find that you should concentrate more on paying your debt ON TIME, but not paying it off completely. Anything you do during the application process can affect your credit score and could impact your chances of getting a loan.
Here are 7 more things you should avoid doing when applying for a home loan:
- Buy a new car, lease a car, or otherwise enter into more debt
- Forget to make all of your loan and debt payments on time — during the underwriting process, your credit score will be checked again
- Transfer large sums of money from one account to the next
- Switch your job; if you do, ensure you remain in a salaried position and not a commissioned position in which your income varies
- Open new lines of credit, especially those for large purchases such as furniture
- Make undocumented or uncommon deposits to your accounts
- Accept large cash gifts (remember, large amounts of money given to you need to be documented)
There is no doubt that the mortgage process and underwriting process can be complex. That’s why it can be helpful to talk to professionals before you get started.
Our team at Murfreesboro Mortgage has years of experience guiding home buyers down the right path.
So if you’re a first-time home buyer, give us a call or stop by our office. We’ll make sure you avoid these 7 mistakes and help make your home loan application process easier.