Applying for a mortgage loan can be a tedious, tricky process as it is. If you are thinking of getting a mortgage, try to avoid these three things if you truly want to close on that beautiful new home...
1. Job security is key in the eyes of your bank - be sure to make no changes to your employment during the time you are under contract to purchase your new home. If you all of the sudden lose your job, or need to change your job, know that this could impact your ability to qualify for a mortgage. Side note - even if you get a promotion, let your lender know, as they will need to source the extra income, and this can sometimes take time to gather documentation. If they discover the promotion just before closing, this extra due diligence could cause a delay in your closing.
2. Undocumented funds - The bank wants to be sure they can source 100% of the funds you use to purchase your home. This means, they need to be able to determine WHERE it came from (paycheck, gift fund from your parents, etc). If you have a large amount of cash that is undocumented: savings in a box under your mattress or payment for an "under the table" job, don't expect to use those funds for your home purchase.
3. Changes to your credit score - Your credit will be closely monitored while you are applying for your loan. ANY changes to your credit could impact your ability to qualify for your loan. So, avoid opening new credit cards, cosigning on loans for anyone, or purchasing a new car yourself.
As always, if you ever have any questions, don't hesitate to reach out to us! We're always happy to help!!