Things to Avoid When Applying for a Mortgage

Applying for a mortgage to purchase a home? If you answered yes, let me explain what you should avoid once you do!

It is an exciting time when you decide to apply for a mortgage loan and begin your home search. However, it is essential not to get ahead of yourself. You must keep these six things top of mind as you go through the process.

Do not deposit large sums of money without speaking to your lender about how to document it. Lenders need to source your money, and cash is hard to trace in a paper trail.

Do not make any large purchases, such as furniture or appliances or a car. This will disqualify you from your loan due to a higher debt-to-income ratio.

Do not co-sign any loans for anyone. Although you may not be the one making the payment, it will still count against you.

Do not apply for new credit, whether it’s for a credit card or a new car purchase. This will have an impact on your FICO credit score.

Do not close any accounts. Although having fewer credit cards may make you a stronger borrower, lenders like to see the length and depth of a borrower's credit history.

Do have good communication with your lender on any changes in your income or employment status.

And finally, connect with trusted industry professionals to guide you through the process and help you make informed decisions to get you to your goal of homeownership. The Agent and Lender that you choose to work with will have an enormous impact on how smoothly the process goes, and if your goals are met.

With 4 decades of experience, in the San Diego market, and having helped over 2,200 buyers and sellers to successfully buy or sell a home, we have a wealth of experience, as well as resources, including referrals to the very best lenders to make the process a great experience for you! Feel free to connect with my team and I with any questions to get you started on your homeownership journey.