What to Avoid After Applying For a Mortgage4/16/2019
As someone who has many interactions with buyers and sellers, buyers have the most to lose when it comes to credit scores and banking changes. Here are some tips on what to avoid after you found the perfect home and now you must finance your perfect home. Avoid any large purchases such as a new car or new furniture. New debt creates new obligations which in turn creates new qualifications and sometimes higher debt to income ratios and make for riskier loans. Don’t co-sign any loans. Co-signing means you are now obligated, and obligations mean higher ratios. Your Lender will have to hold these payments against you. Don’t change your bank accounts. Lenders need to track your source of income and track your assets. Before even transferring money between accounts talk to your loan officer. Applying for new credit such as a new credit card or a new car can affect your interest rate. Lower credit scores can determine your interest rate and maybe even your eligibility for approval. Don’t close any credit accounts a major component of your credit score is your length and depth of your credit history. Closing accounts have a negative impact on both. If you’re considering purchasing a new home talk to a professional realtor and a financial advisor to help not only find but purchase your perfect home.