What NOT to do during Mortgage Application Process
There are some mortgage mistakes to avoid just to remain clear from the trouble that comes upon application disapproval.
It takes time for the application to get approved. In a mortgage market 45 days time frame is typically considered to be a typical duration.
But this time is may vary upon the market situation and complication of the loan. e.g If the loan rate is low then this time may increase.
Mortgage approval time frame is very crucial. Many things can go wrong during this time. Some are human errors and while some can be out of one’s control.
Human errors can be avoided. That is why it is necessary to start with a good mortgage lender and mortgage brokers that will lend your hand in making you comfortable and guiding you along the way.
Their assistance will greatly reduce the probability of error. But life is unexpected and their assistance and your efforts will go to waste if you are not careful yourself.
There are things to take care of when you are going to the mortgage process.
Ignoring these guidelines is completely up to you. It is better not to spill the beans of the hardwork that you and your mortgage team. Happy life is about making smart decision. So avoiding pitfalls along the mortgage approval process is smart.
Mortgage Mistakes to Avoid
Here are some mortgage mistakes that one should be vary during the mortgage approval process.
1. Do not make large purchases for your new home like buying furniture, home appliances etc Because these purchase may get your loan disapproved
2. Do not quit your job or start a new company. Lender don’t take that as a good sign.
3. Do not switch your job either. Switching the job from salaried status to commission based does not seem good.
4. Do not trade up to a bigger lease nor think of buying a car. This will adversely affect your debt to income ratio.
5. Do not forget to pay your bills. Even if the bill is in dispute, just pay it.
6. Do not make deposits that are just random or that you cannot document. These deposits do not win trust. A crucial factor in helping you secure that mortgage. This also includes down gift payments. If you decide to deposit it, then take proper consultation regarding filing paperwork.
7. Do not transfer large sums of money between bank accounts.
8. Do not open credit cards no matter how enticing the offer maybe.
There are right and wrong way of doing things. The above are the eight mistakes people do. Be smart and do the right things. Try to avoid these mistakes before the ink gets dry on your closing documents.