Mortgage Mishaps to Avoid
The home financing process can take anywhere from 30 to 60 days or longer to complete. This can often be a stressful time for buyers. To avoid additional time and stress, avoid doing any of these things while your home loan is being approved and processed.
Don't quit your job, become self-employed or change employers.
Steady employment is critical to securing a home loan. Most lenders require two years at one job. Switching employers mid-process may delay your home.
Don't fall behind on any of your current payments.
Your payment history makes up more than one-third of your credit score. Just one late payment before closing could sink the deal.
Don't finance new cars, furniture, flooring or any other major purchases.
Your debt-to-income (DTI) ratio is a significant factor when considering your qualification level. If you add more debt during the process, it could affect your terms. Additional credit checks may also negatively impact your credit score, potentially changing your rate and loan eligibility.
Avoid spending your savings.
Unless you do a First-Time Homebuyer loan or have negotiated with the seller, your down payment and closing costs won't be covered in your loan. You may need your savings to help cover these costs on closing day.
Disclosure:
For informational purposes only.