Some Do's and Don'ts
When applying for a mortgage loan.
Do's
Get Fully pre-approved
Keep all of your personal documnets
Keep all of your personal documnets
An initial mortgage pre-qualification is an estimate of how much you can afford based on the information you submit.
Keep all of your personal documnets
Keep all of your personal documnets
Keep all of your personal documnets
Including pay stubs, bank statements, proof of earnest money deposit and other docs requested by your lender, as they will be required prior to closing.
Pay all your bills on time
Keep all of your personal documnets
Pay all your bills on time
Just one 30-day late payment on a loan or credit card can kill your mortgage qualification.
keep your lender Informed
line up homeowners insurance
Pay all your bills on time
Including marital status, change in household size or change in household income (increase or decreased).
line up homeowners insurance
line up homeowners insurance
line up homeowners insurance
Homeowners insurance must be provided prior to closing.
Use Your credit as usual
line up homeowners insurance
line up homeowners insurance
Red flags are raised easily with the scoring system. If it appears that you are changing your pattern, it will raise a red flag and your score could go down.
Don'ts
Change jobs/become self-employed
Change jobs/become self-employed
Change jobs/become self-employed
Your pre-approval is based on your current job history and income, so making a change - even if it is moving to a higher-paying job - could change your ability to qualify for your new home.
make any large credit purchases
Change jobs/become self-employed
Change jobs/become self-employed
This is fastest way to bring your score down 50-100 points immediately. Try to keep your credit card balances below 30% of their available limit at all times during the loan process.
co-sign for anyone
Change jobs/become self-employed
Close any credit accounts
New debt - even as a co-signer - will affect your debt-to-income ratio and credit score.
Close any credit accounts
apply for news credit of any kind
Close any credit accounts
Even if they have a $0 balance. This could negatively affect your credit score.
Consolidate credit cards
apply for news credit of any kind
apply for news credit of any kind
When you consolidate all of your debt onto one card, it appears that you are maxed out in that card, and the system will penalize you.
apply for news credit of any kind
apply for news credit of any kind
apply for news credit of any kind
Every time you have your credit pulled by a potential creditor or lender, you lose points from your credit score immediately.
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