Mortgage is a pain. Unfortunately, also a necessary part of life. Especially the life of a real estate sales agent :). But thats not the point of this article.

The point is, there are some things that we do that create more grief for us in the mortgage process. Hence, making the home buying process excruciating. While these things might seem logical in the moment, what they really do is create “eleventh hour crisis” for the buyer.

What the buyer needs to remember is: until you get the keys to the house, you need to be maintain you current financial situation.

If you have been approved, pre-approved, pre qualified,  here are the thing you dont do (at least not until you get the keys):

Don’t make any large purchases like a new car or new furniture.

Many buyers make this mistakes. Buyers might be moving in town, and end up getting a new car. Buyers get excited over their new house, and end up purchasing furniture. It is only human nature. However, do it AFTER you get your keys. Financing a new car or new funiture will change your debt-too-income ratio, and your ability to qualify for a loan.

Don’t co-sign other loans for anyone.

Yes, you swear you will never be making the payments. Unfortunately, co-signing means you are taking reponsibility for the loan, and this does count against your debt-to-income ratio.

Don’t change bank accounts.

Lenders need to source and track assets and transfers between accounts. That task is significantly easier when there is a consistency of accounts. If possible, don’t even transfer money between accounts. The more stability, the higher the possibility you will get a loan.

Don’t apply for new credit.

This means no credit cards from retailers that will give you an extra 5% off on the sofa, bed, and dining table. When you have your credit report run by organizations in multiple financial channels, your credit score will be affected. Lower credit scores affect your interest rate, and even your eligibility for approval.

Don’t close any credit accounts.

Many buyers have erroneously believed that having less available credit makes them less risky and more approvable. Wrong. A major component of your score is your length and depth credit history, and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both these determinants of your score.

Don’t make large cash deposits into your bank accounts.

All money in the account used for down payment should be “seasoned”. This means 60 days or more. Do not deposit large amount of untracable cash into you account after you apply for a mortgage.

Don’t change your job.

You may suddenly find your calling in life, but this is not the time to quit your job and become self-employed. In fact, try not to even go on a leave of abscence (no extended vacation, medical leave, etc). If it is you expect taking a leave in the near future, apply for the loan when you return, or make sure you can close escrow before you go.

Don’t lie on your loan application.

Please be sure to record all your debts and liabilities.

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Getting a loan approved is a taunting process. Especially with the stricter guidelines after the mortgage crisis. Work closely with your realtor, and an experienced mortgage broker. This way you will be able to get your dream home as quickly as possible, with the least amount of hassle.