If you are navigating the home buying process for the first time, we realize it can be daunting at times. Fear not! Simply avoiding these three mistakes will add stability and predictability to your home loan process from start to finish.
Stability is key when it comes to loan approval. As such, it’s probably best to hold on to your current job if you’ve already started the homebuying process. Ideally, you will keep the same employer that you had when your loan was approved, all the way through closing. After that, you can feel free to make any changes as you see fit. However, if you must change employers during the homebuying process, it will be in your best interest to switch to a position with a salary increase, if possible.
Missing Billing Payments
Any lender will have one last look at your credit before closing. As such, do not be mistaken by thinking you are in the clear to miss a payment here and there after you’ve received a loan commitment. These late payments will also show up on your credit report, and they could have the potential to pull the rug out from under your loan right before closing.
Each time you make a credit inquiry, whether you are applying for a credit card or loan, it appears on your credit report. To a lender, this could signify that you are attempting to take out additional debt. The last thing you want to do during the home loan process is damage your debt to income ratio and potentially have your loan agreement revoked altogether. As such, be sure to avoid opening new lines of credit throughout this fragile time.
Secure the Home Loan for Your Needs and Budget with Golden Lenders
Golden Lenders helps home buyers in Colorado, Florida and California understand the different types of mortgages that are available and provides loans to help people achieve the dream of homeownership. Since the specifics of which mortgage to choose is dependent on a variety of factors, we encourage you to call us for more information and find out which is right for you. Our number is (303) 482-2361, or you can send us a message.