Stop Dont Do This When Getting a Mortgage

Stop! Don’t do this when getting a mortgage! Buyers, if you are applying for a mortgage do not make these common mistakes. If you are getting ready to buy a home, it’s exciting to jump ahead of yourself before closing, but don’t make these costly mistakes before closing.

### 1. **Handling Large Sums of Cash Improperly**

Depositing large amounts of cash into your bank account shortly before applying for a mortgage can be problematic. Since cash isn't easily traceable, lenders might question the origin of these funds as they scrutinize your financial history. Always discuss the proper way to document such transactions with your lender beforehand.

### 2. **Making Large Purchases**

It's tempting to start buying furniture or appliances for your new home or even splurge on a new car or vacation. However, making significant purchases on credit before closing can lower your FICO Score and signal risk to lenders. It's best to curb your spending and wait until after the mortgage closing to make any large purchases.

### 3. **Co-signing Loans**

While co-signing a loan for a friend or family member is a generous act, doing so during the mortgage application process can increase your perceived financial risk. Remember, when you co-sign, you're responsible for that loan's repayment, affecting your debt-to-income ratio and potentially your mortgage approval.

### 4. **Switching Bank Accounts**

Consistency is key when it comes to your assets. Lenders prefer a clear and uninterrupted view of your financial situation. Switching banks or transferring large sums between accounts can create unnecessary complications and potentially derail your mortgage approval.

### 5. **Applying for New Credit**

During the mortgage process, your credit report will be scrutinized multiple times. Applying for new credit cards or loans can negatively impact your credit score, making you a less attractive candidate to lenders.

## Navigating the Process

The path to securing a mortgage and buying your dream home is fraught with potential missteps. However, by avoiding these common mistakes, you can streamline your application process, enhance your attractiveness to lenders, and move closer to homeownership.

At The David Marshall Team of eXp Realty, we understand the complexities of the home-buying process and are dedicated to providing our clients with the guidance and support they need to navigate it successfully. Whether you're applying for a mortgage or searching for your perfect home, our team is here to ensure a smooth and stress-free journey.

If you're looking for expert advice on mortgages or need assistance with any aspect of buying a home, then please contact us for our client based approach to service excellence.

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David Marshall
The David Marshall Team | eXp Realty
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