Do not transfer a large deposit of money to your bank account. Your lender needs verification, and this process can be lengthy if you are unable to submit documentation such as a pay stub, invoice, or letter from a donor. Always speak with your loan officer in advance for guidance if you find yourself in this situation.
Do not keep cash at home that you intend to use in the transaction. Avoid the hassle of trying to produce documentation and keep it in your bank account.
Don’t open or close a credit card account while applying for your home loan. Credit card companies report this to credit bureaus. Doing so can change your credit score or indexes, which can affect your loan score. Even if the lender has already withdrawn your credit, know that the lender does a gentle tug at the end before closing, it is called a credit update and any changes you have made will show up.
Do not change jobs after applying. If you have to change jobs, it is recommended that you wait 30 days after starting your new job to apply for your home loan so that you can establish your income with your lender. You will need to show at least one pay stub to start the loan process.
Do not make large purchases while applying for your loan, especially with credit cards. Wait to buy expensive items, like furniture or a new car, until after closing. Talk to your loan officer if you have these plans.
Don’t overdraw your checking account. This may seem obvious, but keep a close eye on your account balance to avoid this costly mistake. If your lender asks you for a bank statement, it certainly won’t look good if you have overdraft fees because they may think you have insufficient income or can’t manage your money.
And last but not least, do not withhold information on the mortgage application. Be open with your loan officer. Be it that “forgetting” to disclose a previous bankruptcy, foreclosure, late mortgage payment, etc. If a financial institution discovered after submitting the application that you (intentionally) failed to submit certain information, or clearly lied about certain points, there is now a huge shadow of falsehood over everything else that you have allegedly fully disclosed. . Most of the time, your mortgage application will be rejected and it can also jeopardize future applications.