Avoid these six mistakes when you’re applying for a mortgage.

When applying for a mortgage, there are several mistakes people make that can completely shut down the process and impact your ability to buy a house. Today I’ll share the top six mistakes to avoid if you want your home-buying process to go smoothly:

1. Depositing cash into your bank accounts. Lenders always want to be able to source the deposits you make, and if you’re depositing large sums of cash, that can make it difficult to do so. If you can’t verify where the deposit has come from, the underwriters may kick it back.

2. Making large purchases like a car or furniture. Ultimately, new debts like those can impact your debt-time-income ratio, which in turn impacts your ability to get the loan.

3. Co-signing other loans. That would put a new obligation on you, as well as affect your debt-to-income ratio.

New debts like those can impact your debt-time-income ratio, which in turn impacts your ability to get the loan.

4. Changing bank accounts. This ties in with the second mistake; lenders need to be able to source your deposits, and you also need to provide them with a couple months’ worth of bank statements when you apply.

5. Applying for credit. If you do, it will impact your FICO score, which can negatively affect your ability to get the loan.

6. Closing credit accounts. Many buyers have the perception that closing a credit account makes you look better to a lender. In reality, more credit is better; don’t close out any of your credit card accounts or other outstanding lines of credit.

If you have any questions about the mortgage application process, don’t hesitate to call or email my team. We’d love to help.