Applying For A Mortgage?

Avoid Depositing Large Amounts of Cash

Lenders need to confirm where your funds come from, and cash is difficult to track. Before adding any cash to your accounts, speak with your loan officer about the proper method to document your transactions.

Refrain from Major Expenditures

Any major purchases can raise concerns for lenders. Individuals with new debt experience increased debt-to-income ratios (the amount of debt compared to monthly income). Higher ratios are associated with riskier loans, potentially disqualifying borrowers from their mortgage. Avoid the urge to make any large purchases.

Why You Should Avoid Cosigning Loans

When you cosign a loan, you assume responsibility for its success and repayment. This obligation also increases your debt-to-income ratio. Even if you assure that you won't be making the payments, the lender will still factor those payments into your financial obligations.

Avoid Changing Bank Accounts

Lenders must locate and monitor your assets, and this process is simplified when your accounts are consistent. Talk to your loan officer before transferring any money.

Avoid Applying for New Credit

Whether applying for a new credit card or purchasing a new car, having your credit report reviewed across different financial sectors (mortgage, credit card, auto, and etc...) can impact your credit score. A lower credit score may affect your interest rate and your likelihood of approval.