10 things NOT to do if you're in the market to buy or refinance a home

TOP 10 things NOT to do when you are trying to buy or refinance a home

1.Do NOT quit your job or change jobs. Employment stability is a major factor in the underwriting process. Quitting or changing jobs, or even positions within the same company can greatly endanger your loan approval. If you are likely to quit or change jobs during your application process -- even for a promotion --  consult your mortgage loan originator immediately.

 2.Do NOT make any large purchases immediately before, or during, the loan approval process, either with cash or credit. In addition to cutting into the money available for your down payment, you may add to your monthly expenses and underwriters don’t want to see an increase in your debt-to-income ratios.

 3.Do NOT have your credit pulled. Too many inquiries during a certain time period can negatively impact your credit score. Additionally, you’ll create extra work for yourself. Most underwriters will ask for a letter of explanation about the inquiries made.

 4.Do NOT obtain and/or deposit unusually large sums of money without notifying your loan officer. Remember "cash" is looked at very closely by an underwriter. Unusual deposits outside of normal payroll deposits are often required to be documented and sourced.

 5.Do NOT open, close or transfer any asset accounts without first consulting your mortgage loan originator. Similar to your employment history, it's better when your banking history shows stability.

 6.Do NOT open, abnormally increase nor abnormally decrease your credit balances. Although it may seem ridiculous, paying off an account can actually do more harm than good.

 7.Do NOT stop making payments on anything. For various reasons, some people "skip" their mortgage payment while in the process of refinancing; or otherwise choose to dispute a bill. Be very careful about intentionally withholding payments to creditors. Continuing to pay every obligation is critical.

 8.Do NOT start that long overdue home improvement project you’ve been thinking about for a few years. This is especially important when the home improvement project requires you to take out a loan.

 9.Do NOT co-sign on a loan for anyone. Even if you’re not supposed to be responsible for monthly payments, co-signing on a loan can increase debt-to-income ratio and reverse a mortgage approval.

 10.Do NOT fudge any of the facts on your application. Underwriters live in a world that’s black or white. They don’t take application errors lightly, even the unintentional ones.

Getting approved for a mortgage is often simpler than people expect -- millions of loans are approved each year, after all. However, with your loan approval underway, be sure to avoid behaviors which can put your approval in peril.

 I can help!  Call me to get pre-approved today at 707-322-9481.

Brenda McCracken   NMLS1042557  

Stearns Lending