All too often many people end up ruining their mortgage approval before the loan is closed. I see this all the time and clients often freak out have major stress and anxiety.
Here are the most common errors people make to get their loan denied. Make Sure Your Loan Gets Approved:
What NOT to do When Applying for a Mortgage
HERE IS MY DETAILED LOAN PROCESS ON WHO DOES WHAT
The most common form of stress that I see in a buyer is that they don’t give any room for error in timing. Just because your contract says you should close in 30 or 21 days does not mean something won’t go wrong.
Don’t book moving vans or cancel your lease until you have your KEYS IN HAND!!
Bad Mortgage Behavior, Defined
Keeping “good behavior” in mind, here are 8 things you should absolutely not do between your date of application and your date of funding. Any one of them could force a revocation of your mortgage approval.
Ignore these rules at your own peril.
- Don’t buy a new car or trade-up to a bigger lease
- Don’t quit your job to change industries or start a new company
- Don’t switch from a salaried job to a heavily-commissioned job
- Don’t transfer large sums of money between bank accounts
- Don’t forget to pay your bills — even the ones in dispute
- Don’t open new credit cards — even if you’re getting 20% off
- Don’t accept a cash gift without filing the proper “gift” paperwork
- Don’t make random, undocumented deposits into your bank account
About Jason Wheeler - Real Estate & Lending
I made a few of these mistakes on my last loan application… wish I had read this article first. I’m sharing it.
Thanks for sharing Bob.