Thinking of buying this Spring? Have you been preapproved for a mortgage? Navigating the post-mortgage application phase is just as important as pre approval. Here are some of the guidelines to guide you through the period between applying for a mortgage and closing. Above all avoid these Biggest Mistakes in Mortgages.
1. Avoid Large Cash Deposits:
Lenders require a transparency. Large cash transactions often lack a paper trail. Before depositing any substantial amount of cash, consult your loan officer to ensure you’re documenting your financial transactions properly.
2. Refrain from Significant Purchases:
Big purchases can raise red flags for lenders because they increase the debt-to-income ratios. New debts, such as a car purchase, could render you ineligible for your mortgage.
3. No Cosigning Loans:
Cosigning a loan makes you accountable for its success and repayment. It is an additional responsibility that can contribute again to a higher debt-to-income ratios, impacting your mortgage qualification.
4. Be Consistent in Bank Accounts:
Lenders rely on consistency verifying assets. Before transferring any funds, be sure to communicate with your your loan officer to ensure it aligns with the requirements.
5. Keep Existing Accounts Open:
Closing accounts with available credit doesn’t necessarily reduce risk or increase approval chances, however your credit score is influenced by the length and depth of your credit history and your total credit usage. Closing accounts can negatively impact both aspects of your credit score.
Navigating the period between applying for a mortgage and closing requires strategic financial moves. To ensure a smooth home purchase, be sure to have a trusted lender and realtor on deck. We have great Main Line loan officers who have assisted hundreds of our clients and are willing to help! Contact Kimmy Rolph Real Estate today!
Did you find Biggest Mistakes in Mortgages useful? Read more about mortgages on The Main Line here!
