What Not To Do During the Loan Process

Change employment

Major life changes may affect the funding of your mortgage. If possible continue working at your current employer, living at your current residence and making your mortgage/rent payment on-time. Show your underwriter that you are responsible and not risky to lend to.

Make any large cash deposits into bank accounts

Or transfer any balances from one account to aother. Your underwriter wants to see a steady, regular flow of income. If you’re only staying afloat because of random, large deposits from family members, you’re not a reliable candidate. If you receive a big enough deposit, you’ll need to fill out a gift letter.

Make any major purchases (car, jewelery, furniture, etc.)

While it can be tempting to want to furnish your new home or park a brand new car in your new driveway, avoid making any large purchases on credit. This raises your debt-to-income. It also adds inquiries to your credit report, which can lower your score and raise a red flag to lenders.

However, you should continue to use your credit as normal. Show that your debt to income ratio is stable and your spending is in control.

Open any new credit accounts

This also means you shouldn’t close any cards out, either. Both actions can hurt your credit score, and you want your credit score to be as high as possible when you apply for a home loan.

Consolidate your debt (consult us prior)

Again, don’t do anything that will have affect on your credit score. Consistency is key when applying for your mortgage.