There are many articles written on what things to do, when applying for a home mortgage loan. However, in this article, we will discuss some common mistakes seen when applying for a home mortgage.
Avoiding all of the items listed below in this article, will increase your chances of not only getting approved for a home loan, but also ending up with the most favorable terms on your new home loan.
Let’s discuss the mistakes to avoid, when applying for a home loan.
Mistakes To Avoid
Changing your line of work or quitting your job altogether - lenders want to see consistent employment in the same line of work
Not making all of your current debt payments on time - it’s a given, but missing payments is recipe to lower your credit score and not be approved for a loan
Obtaining or applying for any new credit – you should never apply for any new credit during the home mortgage loan process and also disclose any recently obtained new debts
Making large deposits into your bank account that cannot be sourced, such as a large cash deposit – lenders will analyze all deposits into your most recent 2 months’ bank statements
Switching from a salaried job to a commission based job – changing the structure of how you are paid could potentially prevent you from obtaining a loan
Running up the balances on your existing credit accounts – you should avoid large charges on credit cards, during the loan process
Over drafting your bank account – lenders will sometimes view this the same way as missing a payment
Unfortunately, this list exists, because items like this do sometimes occur during the loan process and if
you were to make one of these mistakes, it doesn’t mean that your loan would not be approved, but it most probably means that the process will become more difficult.
So if you are getting ready to apply for a home mortgage, don’t make these mistakes.
As always, to qualify for a new home loan, it is best to sit down with a licensed mortgage lender, such as Strategic Mortgage and be properly pre-qualify for a new home loan.
For more information on current home loan programs and options for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: firstname.lastname@example.org or online at www.strategicmtgaz.com
Vasilios Kamboukos – NMLS#160440