When lenders review your mortgage application, they look for consistency in your finances. Avoid these common mistakes to ensure a smooth mortgage process and increase your chances of approval.
1. Do Not Make Major Purchases
Avoid purchasing big-ticket items like furniture, appliances, jewelry, vehicles, or going on vacations. These purchases can significantly affect your credit score and your ability to secure a loan.
2. Don’t Change or Quit Your Job
Job stability is crucial when applying for a mortgage. Lenders want to see that you have a consistent income. Changing jobs or quitting can raise red flags and hurt your chances of approval.
3. Consult with Your Mortgage Professional Before Moving Money
Before withdrawing, depositing, or moving large amounts of money in or out of your bank account, make sure to consult with your mortgage professional. Unexplained transfers can cause delays in the approval process.
4. Do Not Pay Off Debts or Collections (Unless Instructed)
Paying off debts or collections might seem like a good idea, but it can actually complicate the mortgage process. Only pay off debts if specifically instructed to do so by your mortgage professional.
5. Avoid Using Cash for an Earnest Money Deposit
Using cash for your earnest money deposit can be problematic. Since cash is difficult to verify, it could result in a delay in closing. It’s better to use a check or wire transfer.
6. Don’t Have Your Credit Report Pulled Too Many Times
Having your credit pulled too many times can hurt your credit score. However, if you’re shopping around for your mortgage and have multiple credit pulls within 30 days, it won’t impact your score.
Have Questions?
Our loan officers serve both Oregon and Washington and are happy to help! Whether you’re just getting started or need assistance with your application, we’re here for you.
Contact Us:
- Phone: (503) 608-2178
- Email: admin@dc-lending.com
- Visit: 1849 NE 106th Ave Ste 205, Hillsboro, OR 97006