Things You Shouldn’t Do When You’re In the Process Of Applying for a Mortgage

When Can I Apply for a Mortgage Online?

You can apply for a mortgage online anytime you are ready. Here are a few things that could put brakes on your mortgage hopes, but you can try to fix them. It could make all the difference in getting the home you have been waiting for and missing a great chance.

1) Do Not Apply for a New Credit Card When Apply Home Loan

• Buying furniture or signing up for 0% interest credit card will ding your credit scores
• DND – do not disturb your credit scores when you are trying out for a huge loan
• Applying for new credit, however small, along with new mortgage waves a red flag to stop/delay mortgage application.



2) Do Not Deceive Your Lender about Your Situation While Applying for a Loan for a House

• Lies may cover up something temporarily, but it will not change things
• Misleading facts are a risk for losing mortgage opportunity
• You may unwittingly cause mortgage fraud, which is illegal


3) Do Not Attend a Loan Meeting With an Open Credit Report Dispute

• File dispute for inaccurate information on credit reports to improve credit
• Open credit report disputes are unacceptable to mortgage lenders
• Federal Student Loan Debt Mortgage Refi will make you INELIGIBLE for government programs.
• Finish with disputes and clear up credit report errors before applying for mortgage



4) Do not expect you and your spouse must be on mortgage documents

• Couples want to share everything in an ideal world
• Single name and income vs. joint name and joint income are different situations for applying for mortgage
• Spousal credit problems affect mortgage application
• Income discrepancies put brakes on a mortgage process
• Spouse’s debt are considered for community property state FHA or VA mortgage loans
• Necessity for a future home is important consideration for applying it alone

Home Mortgage Tips and Advice from Experts When Apply for Mortgage

When you start thinking about best place to apply for a home loan, keep these things in mind. You should NEVER DO these things right before or after applying.

1) Do Not Make Large Deposits or Withdrawals

• Recent bank statements can potentially raise a red flag
• Document your down payment gift amount as per mortgage officers’ advice
• Banks and lenders need to ascertain fund source and nature of large deposit



2) Do Not Change Jobs When Apply for Home Mortgage

• Mortgage approval depends on proof of a steady income
• Working in same industry over the years is a great positive
• Even in same industry, avoid switching jobs right before or during mortgage application



3) Do Not Make Large Purchases on Credit

• No large purchases on credit
• No giving in to temptation of furnishings for new home
• Hold off parking a brand new car in your new driveway
• Changing debt to income (DTI) ratio and new credit inquiries affect scores to deter lenders
• Continue using credit as normal to portray stable income with controlled spending



4) Do Not Run Up a Home Equity Line of Credit If Need to Apply Mortgage Loan

• Home equity line of credit presents same dangers as credit card
• Using it indicates too much reliance on credit
• Prove you are living on income other than credit cards or lines of credit



5) Do Not Close Credit Accounts If You Are Planning to Apply for a Mortgage Loan Online

• Closing unused accounts cause chain reactions
• Reduced available credit and raised debt to income (DTI) ratio puts mortgage loan at risk
• Closing unused credit accounts during mortgage application is not a good idea



6) Do Not Make Payments on Collection Accounts

• Making payments on older collection accounts make them ‘current’
• Credit scores take a hit
• Ignore collection accounts nearing the 7-10 year mark
• Revived accounts can hook you for many years to come
• Leave them alone to quietly fall off credit reports

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