Getting approved for a mortgage is no small feat these days. At times it can feel like you have to jump through one hoop after another, chasing down bank statements, pay stubs, tax returns and even copies of deposited checks.
All that paperwork is vital to getting approved for a mortgage but once you are approved it is important that you not forget you are in the middle of the application process. That means you and your application can be evaluated and re-evaluated at any time all the way to closing AND you can still be denied.
With that in mind, here are some mistakes to avoid after applying for a mortgage.
Don't open new credit accounts: For any reason! Wait until the loan closes and then you can borrow to your heart's content. A seemingly innocent transaction like opening a line of credit at the local furniture store to buy a couch for your new home can end the deal, no questions asked. Cars are another purchase that get many borrowers in trouble. See the first item above. A simple credit check by a car dealer before closing can raise a red flag for the underwriter and end your hopes for a mortgage.
Don't change jobs: Lenders like to see job stability and a regular paycheck. Changing jobs during the loan process won't automatically kill your chances of getting a mortgage but it will definitely make it more difficult. Even if you are changing jobs in the same field, for more money, the lender could require two months of pay stubs from your new job before allowing the loan to close. If you are buying a home with this mortgage, the last thing you want to do is give the seller a reason to back out of your deal and sell your dream home to someone else.
No deposits that can't be documented: Expect to have to document every deposit to your bank account(s) for the two months prior to application and even during the loan process. Underwriters don't like to see deposits that make them go, "Hmmm." Why? Because they are trying to verify that you can make the monthly payment of your new mortgage. A $3,000 cash deposit with no bill of sale, receipt or gift letter will not help you qualify for a mortgage and could kill the deal if you need those funds for a down payment.
In short, remember that the mortgage approval process is just that: a process. The initial approval doesn't mean anything until the loan closes. Keep everything as simple as possible and hold off on those big purchases or even small credit applications until the deal is done.
Low:
63101 De Haviland Ct, Bend, 97701
2br, 2 ba, 1280 sf, .09ac lot, built 2008
$215,000
Listed by Birtola Garmyn High Desert Realty
Mid:
1175 NW Columbia St, Bend, 97701
4br, 2ba, 1570sf, .13 ac lot, built 1939
$379,900
Listed by Assist-2-Sell Sellers and Buyers Realty
High:
21835 Los Serranos Dr. Bend, 97701
6br, 3.5ba, 4751 sf, 8.64 ac lot, built 1981
$1,200,000
Listed by Home Smart Central Realty
