Things Buyers Should Avoid When They Apply For A Mortgage
If you're thinking about applying for a mortgage for a home loan, there are some things that some very key things you should know. And the last thing you want to do is work so hard for homeownership, only to shoot yourself in the foot. Here are some things buyers should avoid when they apply for a mortgage:
Not just home-related purchases, but any large purchase can be a red flag for lenders, so resist the urge to buy any large purchases like appliances or furniture because people with new debt have a higher debt to income ratio.
Funny thing, we had a buyer purchase a car in the middle of a transaction, and that never ends up well for the buyer. There are so many times we see buyers kind of screw themselves over by kind of doing things that they weren't aware of. So, what are some other things that buyers should avoid when applying for a mortgage loan?
Do not close any accounts. Many borrowers believe that having fewer accounts makes them more likely to get approved. This is simply not true. Because credit is based on the length and depth of your credit. And closing accounts always has a negative impact on your credit score.
Actually, we had a buyer on one of our listings quit their job because they thought they were already fully approved for a loan. So if you think these things don't happen, trust me they do.