You and your family may be hoping to step into your dream house but lack the necessary funding and connections. Luckily, you can apply for a house loan to ensure you can build your house or buy a finished one. But you have to be careful when taking on loan debt, which is one of the biggest financial challenges you can encounter.
This article will discuss four common house loan mistakes many aspiring homeowners make. Take this as an opportunity to prevent bankruptcy and ensure that you and your family can enjoy living in a house while remaining fiscally responsible and secure!
Opening and Closing Lines of Credit
House loan providers and originators will be assessing your credit score, so you should not either open or close any line of credit. Doing so can negatively impact your loan application as you aim to guarantee that your credit stays intact.
Don’t be complacent. You may be determined to act with your line of credit because your mortgage has already been pre-qualified, but you have to remember that pre-qualification doesn’t automatically mean approval.
As such, monitor your financial activity and keep a clean record. For example, you can use your credit card, but make sure you pay your charges and avoid paying late fees. That way, you can maintain your status as a viable house loan benefactor!
Buying High-Value Items
You and your family may want to get into purchasing new items for the soon-to-be-your property, like a jacuzzi or a luxury car. However, these big-ticket purchases can disqualify you from acquiring any house loans, resulting in financial instability. That’s why it’s best to hold off buying any big-time items until your mortgage has closed. That way, you can also keep to your loan payments and avoid having a low credit score!
Starting a New Job
Venturing into a new career path may be something you want to do, but it is not the right time during the loan process! Mortgage lenders consider your employment history and financial capabilities to guarantee that you can pay off your house loan. Unemployment or being in-between jobs can lead to loan disapproval. Your lender may also require you to submit extra documentation about your new job, which can slow down your loan process.
All you have to do is stay at your current job and stay motivated to acquire your dream house. You should also not worry that you won’t be happy if you keep staying in a career you don’t like. Remember, it’s temporary! You can start job hunting and re-aligning your professional career path once the mortgage is closed!
Depositing Large Sums of Money
Most aspiring homeowners believe that having more money and depositing it can secure their application as they wait for mortgage loan approval. They think it will entice lenders to favor them as being financially capable. However, that’s not the case at all. In fact, mortgage lenders often request an explanation and proof of origin for non-payroll deposits and transfers over one thousand dollars.
As such, track your deposits and keep your financial records open. Inform your loan officer in advance if you receive any large sums of money you wish to deposit. For instance, you may acquire bequests from a close family relative. These lines of credit may be unexpected and can put your loan application to question, so be a responsible aspiring homeowner and stay transparent!
Your Royal Oak Home Loan Experts: Mortgage City
Getting your house loan approved may be tedious and challenging, but now, you have a better understanding of its process! All you have to do is find the ideal mortgage originator to connect you with the best loans for you and your family. Avoid all the formerly mentioned mistakes and start your loan application today!
Are you looking for a mortgage broker in Detroit for your housing dreams? Take active steps to secure your dream home with us at The Mortgage City. We can help you avoid any costly loan mistake and guide you through our seamless home loan acquisition process! Purchase your ideal real estate with us and enjoy your new lifestyle by calling us at (248) 930-8709!