There are many things you should know and “DO NOT “do when applying for a Mortgage. All too often, I hear things like “I just HAD to have that White Leather Sofa, it would look perfect in my new living room. Besides, it was on SALE!”, and then the lender has to break the news that buying that Sofa has unfortunately ruined their chances of being able to qualify and be approved for a new Home Mortgage for the House that the sofa was actually intended for.
I never want to see that happen to you or anyone, ever! So, I’m going to tell you what I tell my clients when they get that Dreamy “White Leather” look in their eye.
“DO NOT” !
#1. “DO NOT” buy any furniture with credit. (No New Debt) Remember, I don’t care if it’s on sale. Contrary to popular belief, Sale does Not equal Buy!
#2. “DO NOT” get a new credit card or use your current ones excessively. Limit your credit card usage to emergencies only and make your payments on time.
#3. “DO NOT” buy another vehicle. (No New Debt) It’s just a big no-no!
#4. “DO NOT” quit your job, change your job, or start a business and become self-employed. Doing so changes your employment history, which is a major qualifying factor during the Mortgage approval process.
#5. “DO NOT” transfer or deposit large sums of money into your accounts. Money from Family gifts, items sold, or that Jackpot you just won at Bucky’s will need extensive explanation and accountability. Check with your loan officer first. They may need you to be able to account for it in a specific way for proper traceability.
#6. “DO NOT” spend any of the money that you’ve worked so hard to save for your Down Payment. The money that you’ve saved will also be needed for closing costs and moving expenses.
#7. “DO NOT” end up co-signing a loan for anyone, for any reason. Co-signing is an extension of your credit. (No New Debt) It’s probably not the best idea to co-sign for your best friend Jimmy to get him off your couch and into an apartment. You might as well tell Jimmy to skootch over because you’re moving in with him! Your act of kindness just cost you your mortgage approval. (Best Friends RULE!)
The bottom line is this, Your Income, Your Credit Score, and Your Debts & Liabilities are all used to determine your “creditworthiness “, That means everything, and I do mean everything, must stay the same (Credit Wise) until after you have closed on your new home. And most importantly: No New Debt!
For More of the “DO NOT’s” that will help you get approved and stay approved for your new Home Mortgage, contact “The Mortgage Chick” Kiesha McFadden, Arizona Division Manager & Sr. Loan Originator with Platinum One lending (NMLS # 198458 / NMLS # 1862063) at (480) 252-9365 or [email protected]
If you’d like more information about Buying or Selling your next home, call text or email me, Your Real Estate Concierge, Christine Sirochman at (928) 848-8830 or [email protected]
