If you’re in the market for a mortgage loan, there are a few common mistakes you’ll want to steer clear of during the application process. As a mortgage loan officer, I’ve seen these pitfalls firsthand, in today’s blog, I’m going to share three of the most crucial mistakes to avoid.
Lying about your financial information.
It might seem tempting to embellish the truth a little to increase your chances of getting approved for a mortgage, but trust me, it’s not worth it. Specifically, be honest about child support payments, marriage status, and divorce settlements. Lying about these factors can not only jeopardize your chances of getting approved but can also lead to legal consequences down the line. Lenders verify the information you provide, so always be up-front and transparent about your financial situation.
Quitting your job during the mortgage application process.
Stability is key when it comes to securing a mortgage, and lenders want to see a steady
source of income. Even if you have another job lined up or are planning to start a new
venture, it’s best to wait until after your mortgage is approved and funded before making any major career changes. Quitting your job could raise red flags for lenders and may cause delays or even result in your loan application being denied. Lenders verify income at the time of application and again right before closing.
Avoid incurring any new debt while you’re in the process of applying for a mortgage.
Taking on additional debt, whether it’s through credit cards, auto loans, or personal loans, can negatively impact your debt-to-income ratio, which is a crucial factor in determining your loan eligibility. Lenders want to see that you can manage your existing debt responsibly, so hold off on making any major purchases or taking out new lines of credit until after your mortgage has been approved and closed.
By being honest about your financial information, maintaining job stability, and avoiding new debt, you’ll increase your chances of securing the mortgage loan you need to achieve your homeownership goals.
If you’re ready to discuss your loan options with a professional by your side? Schedule a free consultation with me. I’m here to guide you through the process.
Sabriyah Callis | NMLS 2537498 | Equal Housing Lender
FTC Disclaimer: This is not a sponsored video or article. All opinions are genuinely my own. This post also contains affiliate links and I earn a small commission if you make a purchase after clicking on my links. It does not cost you any extra. Thank you for your continued support to keep the Bri Callis Blog going!
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