6 Things a First-Time Homebuyer Should Never Do After Applying for a Mortgage
Key Factors:
- Avoid Depositing Large Sums of Cash into Your Bank Account.
- Don’t Change Things on Your Bank Account.
- Don’t Make Any Large Purchases.
- Don’t Co-Sign a Different Loan with Someone.
- Don’t Apply for New Credit.
- Don’t Miss Any Payments.
Let’s say it has been months of searching, and you have finally found the home of your dreams. This is always an exciting milestone. While you are likely excited about this opportunity that has seemingly fallen into your lap, it is a good idea to take the next steps with caution, as this is when you will want to avoid jeopardizing your application approval.
This article will uncover six things that a first-time homebuyer should not do after applying for a mortgage.
1. Avoid Depositing Sizeable Amounts of Cash into Your Bank Account
Lenders who you got your mortgage from are solely responsible for sourcing all of your money, while cash is something difficult to trace. Before making large deposits, it is always important to speak with your loan officer about the appropriate method to document the money.
2. Don’t Change your Bank Account Information
It is important to keep in mind that lenders need to source as well as track your personal assets. A bank account that is consistent will make it less difficult for lenders to keep an eye on and easily track your funds. Talk with your loan officer before you decide to transfer money to a new account.
3. Don’t Make Any Large Purchases
Big purchases like new furniture or a brand-new vehicle will only add to your monthly debt and will increase something known as the “total debt-to-income ratio.” For a lender, a high debt ratio will put you at risk of being incapable of making monthly payments on your mortgage. In many cases, even buyers who are qualified with new debt won’t qualify for a home loan.
4. Don’t Co-Sign a Different Loan with Someone
The loan office you work with will keep track of how much money you are earning every week and the source of your income. If possible, we recommend avoiding self-employment jobs or commission-based income in this timeframe.
5. Don’t Apply for New Credit
Whether it is a vehicle loan or a new credit card that you are applying for, when your credit history is looked at by organizations from multiple channels, your credit score will be impacted. A credit score is the single determining factor of the interest rate of your mortgage and can affect your eligibility for your loan.
6. Don’t Miss Any Payments
Late payments or missed bills will have a negative impact on your credit score. Just a single late payment can cause your credit score to plummet and, in some cases, will make it so you are no longer eligible for a new mortgage. If you want to make sure that you will still qualify for a mortgage, it is important to make sure that you pay your bills all on time.
Bottom Line
This article is a good starting point for those looking to secure a mortgage and achieve the dream of owning a house. Through these simplified steps, you can educate yourself on what to avoid when obtaining a mortgage to prevent jeopardizing your application process. After finding a personalized mortgage payment plan, begin house hunting on the Forgotten Coast of Florida. Trust the real estate professionals at Coastal Realty Group to guide you in finding and settling down in the home of your dreams in the many beautiful waterfront properties that make up the Forgotten Coast of Florida today!