Things To Avoid Doing If You Are Planning On Applying For A Mortgage Soon
Getting a good mortgage is crucial if you want to buy a house, and it is important to know that even if you currently qualify for a mortgage, you might not by the time you try to close on the house you are trying to buy. After getting preapproved for a loan, it is vital for you to protect your job, income, credit, and finances, and this means that you should avoid doing the following things, as doing these things may disqualify you from getting a mortgage loan.
Switching jobs
One of the worst things you can do before getting your loan is switching jobs, even if you are switching to a better job that is in the same field as what you are currently in. Lenders generally look at a person's job to see if they have worked there for two years or longer. Lenders prefer seeing at least two years of work experience for the same company as this shows consistency and reliability.
Taking out new loans
Secondly, you should not consider taking out any type of new credit lines, including loans or credit cards. Even applying for a new line of credit can hinder your ability to qualify for a mortgage loan, so you should avoid even applying for new credit accounts. Obtaining new credit or loans can change your debt-to-income ratio, and this can cause problems when trying to get a loan.
Missing payments on your bills
You should also avoid missing payments on your bills. If you miss a payment and it is reported to the credit bureaus, it could cause a decrease in your credit score. A decrease in your credit score could disqualify you from getting a mortgage loan.
Spending too much money from your saving's account
The last thing to understand is that you should avoid spending money you have in your savings account. When you applied for a preapproval, the money you had in your savings accounts is something that the lender probably factored into the decision. If you use this money, it could put you in a financial situation where you no longer can get the loan to buy a house.
If you can avoid these five things during this time, you will be able to protect your financial situation and should not have any problems qualifying for a loan when you need one. To apply for a loan or to get preapproved, or to learn more about the home mortgage process, talk to a mortgage lender of your choice.