There are many things that you could inadvertently do during the process of buying a home that could cost you your loan approval. The following are a few items to consider and to avoid while you are securing your mortgage financing.
Don’t make an expensive purchase
Avoid making major purchases like furniture, cars, appliances, jewelry, or vacations on credit that could affect the amount that you qualify for.
Don’t switch employers or job professions
Mortgage guidelines require a consistent job history. Changes in income or a change in profession could lose you your current approval or make an initial approval impossible from where it may have been before the change.
Don’t switch banks or move money around
You will be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. Changing banks or transferring money to another account could make it difficult to document your funds. Large deposits will also come into question and need to be documented.
Don’t disregard lenders requirements
Final loan approval will require more detailed documentation to submit to underwriting. Be diligent in giving the needed documents that underwriting has asked for to your loan officer. Delays and procrastination could cause problems in meeting your contracted closing date.
The loan process can be tricky to maneuver as it is, be sure not to put your loan approval in jeopardy by disregarding the common mistakes listed, it could cost you money and your dream home.