Choosing the best home financing service can be complicated, and with just a wrong move, you can be introduced to a wide range of difficulties. This is why getting a real estate professional's services is important. This is also why learning more about the process and what can go wrong is just as important.
Here are some of the mistakes lots of homebuyers make when trying to get approved for a mortgage:
Making Big Purchases While Your Mortgage Is In The Process Of Closing.
The reason why you shouldn't make any large purchases before you get to the mortgage closing is that this would change your "debt to income ratio". Keep in mind that unless your mortgage finally closes, any additional debt you acquire may add up to the factors that will be considered by your lender. Many homebuyers think that once the mortgage gets approved, they are already in the clear. However, it is still best to keep your finances stable until the whole process reaches the closing part, as lenders can easily pull out your credit details before they start the funding.
Switching Employment Before Closing
The same logic applies here. Switching jobs is also a big financial step and this can affect your lender's decision in funding your mortgage. What your lender wants to see is that you have a stable job, so a new job may appear less stable to your lender, as compared to a job that has kept you for years. So if you are in the process of getting your loan closed, or approved, just stay in your job, as this would imply that your income is stable.
No Credit Cards
Although it's great to get by without a credit card, this would also mean that lenders won't have any basis when it comes to understanding your payment capabilities. Sure, living without credit card debts may imply that you have a good handle on your 'cash on hand', but having a credit card that you can pay in full every month is a better way to tell lenders that you are a responsible spender.
