Buying a house always comes with its own share of stress, and balancing all the things going on while buying a home can add up quickly. Looking at home listings, putting your budget together, and then getting pre-approved for a mortgage is enough to get most people worked up.
In order to help you avoid making any rash decisions and get yourself in a bind, here are 5 things you should never do after applying for a mortgage in Roseburg.
Don’t Change Jobs
Once you have applied for a mortgage, your lender will start the process of determining whether you qualify for a loan through them or not. They will also determine how much they are willing to lend you and at what interest rate the loan will be.
For the most part, the lender factors in your income, credit history, and debt load to make all of these determinations. It’s very important that you do everything you can to keep things steady during this process to make sure the lender trusts you will be a responsible client.
If you change your job, this may mean an adjustment in your income and can have an impact on the level of risk the lender believes you carry and can impact your chances when applying for a mortgage.
Likewise, if you are self-employed, don’t change the way you are paid. For instance, don’t go from W-2 self-employed to 1099 self-employed while applying for a mortgage.
A good rule of thumb is this; when in doubt, ask your lending officer.
Purchase Big-Ticket Items
If you’re in the market for other big-ticket items like a new car, boat, RV, or even furniture, at the time you’re also looking to purchase a home, it may be time to make a choice between one or the other.
Remember, your main goal while going through the buying process (escrow period), is to keep your credit history as-is with no major changes. Large purchases could absolutely put the kibosh on your home buying efforts when applying for a mortgage.
By the way, this includes any large purchases that could be made in cash but also paying using a credit card.
Don’t Run Up Your Credit Cards
While we’re on the subject of credit, make sure you’re as close to debt-free on your credit cards as possible.
Although having some credit card debt is okay, you don’t want to float a large monthly balance across all of your credit cards. That’s going to be a red flag for most mortgage lenders for obvious reasons.
By keeping large purchases out of the picture and sticking to your budget, you’ll be doing yourself a big favor in securing the very best interest rate when applying for a mortgage.
Don’t Apply For New Credit Or Close Existing Accounts
An important step that can be overlooked by some is to not open… or close any existing lines of credit at your disposal.
When your lender’s underwriter looks through your credit history, they want to see a long-term habit of responsibly managing your available finances. This tells them they can trust you with their money now and you will not likely default on your loan later.
Some people might think it’s okay to let an existing credit account close because they have it paid off and that makes them look responsible. However, remember that letting that account close means you then have less credit immediately available to you.
Don’t Co-Sign Or Take Out Other Loans
I’m not a big fan of co-signing in most instances and it’s no different here. So, last but not least, do not take out or co-sign on any other loans after applying for a mortgage. You may think it’s OK, you might even be helping a loved one out, but this is a big no-no.
Sure someone else is paying for the loan, but you’re on the hook. Co-signing a loan still makes you a liable party if that original person fails to pay on time and your mortgage lender will absolutely consider this.
Lenders want to see consistency in your credit history and tacking on an additional possible point of risk with another loan could send them running for the hills.
Professional Assistance Applying for a Mortgage in Roseburg
The biggest thing to remember regarding your credit during the home buying process is to keep it steady – no big changes, if at all possible. Make that happen and you’ll be on your way to settling down in your new abode in no time.
If you need a lender referral in Roseburg, call us today. We would be happy to introduce you to our 3 top lenders.
Assisting our clients is never a bother so if you need help, applying for a mortgage in Roseburg, contact us today at 541-643-1131!
We’re here to help.