After you have gotten pre-approved (you got pre-approved, right?) for your mortgage, found your house, agreed on a price, and told your friends and family that you are buying a house, you think that the job is done and you’re all set for closing, right? WRONG. There are still major ways to bomb your mortgage back to the stone age if you aren’t careful about it. Here are some of the money mistakes that can sink your mortgage.
Moving cash around is seen as a major red flag to lenders. It can be completely innocuous, where money is just taken from one place, lent to someone, or any other reason. However, since you could also be using money shifting to disguise assets (not that you are!) lenders get nervous. They want to know that the money in your account is yours, and isn’t earmarked for other expenses or debts. They also want to make sure that you aren’t inflating the amount of savings you’re holding to get a better rate or qualify for more money.
It happens to everybody. You have to take time off for an injury or illness, or have a baby, or any number of things. Well, try not to have it happen while you’re applying for a mortgage, because to a lender, it can make you look unreliable. The lender only has the information that they can get from your credit report. Your boss can know that you’re an exemplary employee, with a long track record of showing up and doing an awesome job. You could have had perfect attendance all of the way through school. Doesn’t matter. A leave of absence during the mortgage process can signal that you may not be a reliable earner, and lenders crave stability. This goes for getting a new job as well. Even if you’re making more money, hopping from job-to-job can have a negative effect on your mortgage. Stability is the name of the game.
Oh, man, the mortgages that have been blown up by this. Look, we know that you’re excited about the house. Please, don’t buy furniture until you close. Please don’t open up new credit cards to cover expenses during the purchase. You have to be very careful about your money while you’re closing your loan. Filling the house with furniture can wait until after you close.
Luckily, The Home Loan Expert Team is here to help you navigate the rough waters of closing your loan. Call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?