DO's & DON'TS

Tips to Ensure Successful Mortgage Financing 

 Young Woman Contemplating

DO

Use the credit you have as normal

This shows a healthy credit history of using and paying credit on time.

DO NOT

Apply for new Credit or Initiate new inquiries

Credit Inquires can potentially damage your credit score.  More importantly, opening new accounts will inevitably affect your debt to income ratio and should be avoided at all costs while you are qualifying for a mortgage.

DO NOT

Deposit or Withdraw large Amounts of Money

Federal Law requires banks and lenders to source/trace  all funds and identify their source. Moving large sums of money around can make it difficult to trace and create red flags as to whether we can use the funds or not.  Moving money around can be normal for some.  If this is you, make sure it can be sourced.

DO NOT

Fall Behing on Your Credit Payments

This can negatively impact your credit and also signal to underwriters that you may have issues with your ability to repay

DO NOT

Max Out Your Credit Accounts

This will lower your credit score and affect your debt to income ratio.

DO

Call me if you questions regarding any type of financial decision

If you have any financial decisions that need to be made it is incredibly important that they are communicated to me to ensure that there are no negative effects with your mortgage qualifications.

DO NOT

Change Jobs, Become Self Employed, or Retire

These are drastic changes that can affect qualifications and it is important to let me know before these decisions are made so we can determine the impact they would have on your loan.

DO NOT

Let your bank account show overdrafts

Accounts with insuffienient funds penalties signals to underwriting that you may have trouble with your ability to repay the new mortgage.

DO NOT

Close or Consolidate Credit Accounts

This can hurt your debt to credit utilization ratio, lowering your credit score and/or affect your debt to income ratio.   

DO NOT

Pay Off Collections or Charge-Offs

Paying these off during a mortgage transaction may impact your credit score in a negative way.