Many buyers look to financing the purchase of their home. Unfortunately, some home buyers inadvertently jeopardize their financing in several ways during the loan application process. It is critical for the buyer to take note of the 9 things you are NOT to do while applying for a mortgage.
1.) Don't quit your job or switch jobs. Banks want to see the consistency of your employment. Always consult with your loan officer before doing so.
2.) Don't change banks or close bank accounts without first checking with your loan officer. Changing banks may delay your approval and/or possibly disqualify you.
3.) Don't co-sign on any loans. Doing so will affect your debt-to-income ratio which will affect your purchasing power.
4.) Don't allow anyone pull your credit. Excessive credit inquiry may result in a credit score drop which will affect the mortgage product you qualify for.
5.) Don't take out any loans, lease a car or purchase any furniture during the process. Always wait for your loan to close before making any large purchases.
6.) Don't pack your income, tax, or other important income or asset statements. Your loan officer will likely ask for these throughout the loan process.
7.) Don't stop making payments on your current home. If you become delinquent on your current loan you may be disqualified from obtaining your new home loan.
8.) Don't ignore your loan officer when he asks for something. Your timely response is critical to ensure your loan closes on time.
9.) Don't hide anything from your loan officer. He is your ally and will best structure your loan according to whatever your situation may be.
When in doubt or if you have any questions always consult with your loan officer. He is the best person to make sure your loan is approved and your transaction closes.