The mortgage application process is a bit delicate. Once things are in motion, it’s essential to avoid any mistakes that could delay or raise any red flags to the lender. It’s imperative to proceed with caution and know what not to do during the mortgage process.
Try to avoid these common mistakes when applying for a home loan in Salt Lake City or around the country.
Don’t Change Jobs
Banks like to see an employment record going back at least two years as part of your application. A sudden job change, or worse, a loss, could signal disaster for your mortgage process. Be sure not to make any job changes until after the process is complete.
If a job change cannot be helped, quickly give the lender your new employer’s information and explain the circumstances.
Don’t Open or Close Bank Accounts
Lenders will be scrutinizing your bank accounts as they review the application. Opening a new bank account or closing an existing one can cause confusion and disrupt the mortgage process. It may not disqualify you, but it could undoubtedly delay things.
Also, promptly answer any questions related to charges or withdrawals on your account. It may seem small, but mortgage underwriters in Salt Lake City need to thoroughly understand your financial situation.
Don’t Make Any Large Purchases
This is not the time to make any large purchases. Hold off on that new car, boat, or even large item for your new home. Anything that is paid in installments means that your credit is checked and affected.
Particularly if your credit score is on the lower end of the spectrum, any big purchases could result in the lender not approving your mortgage application.
Don’t Apply for Credit
On a similar note, any new applications for credit such as a credit card or personal loan will affect your credit score, altering your mortgage process. Underwriters want to see stability and understand the full picture of your financial situation. Credit changes at the last minute may derail your mortgage.
Some new homeowners in Salt Lake City are tempted to purchase furniture or other large items for their residence. Even if the purchase is $0 down, your credit will be affected, so avoid the temptation.
Co-Sign a Loan
Children or other family or friends may ask you to co-sign a loan for them during your mortgage process. Please don’t do it! Co-signing a loan will add to your debt and most certainly affect your credit score. Again, it’s important not to disrupt the bank’s review of your finances, or possibly scare them with additional obligations that may affect your ability to fulfill the loan.
Remember that the mortgage process is time-sensitive. Just because a rate is locked in doesn’t guarantee it lasts forever. Any delays due to changing credit scores or debt responsibilities can threaten your approval. In Salt Lake City and across the U.S., be sure not to make these common mistakes during the mortgage process.
Graystone Mortgages helps homebuyers with mortgages in Salt Lake City. To see if you qualify, contact them today!