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Improve Your Chances of Getting Approved for a Conventional Mortgage By Avoiding These Items

[ 0 ] January 18, 2013 |
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Conventional Mortgage

If your credit rating is really high and you are considering a home purchase, you are most likely a candidate for a conventional mortgage. However, there are things that can hurt even the best borrower during the loan process. Here are some things to avoid.

  • Do not change banks. Keep your primary savings and checking account as they are.
  • Do not quit your job immediately before or after applying for any mortgage. Stability in employment is a key factor in getting approved for the loan.
  • Continue to make all debt payments on time. If you have credit cards, try to pay down the balance.
  • Do not finance the purchase of a truck or car until you have closed the mortgage loan. The new loan could negatively affect the debt to income ratios for your application.
  • For the same reason you should not finance a car purchase, do not finance the purchase of any furniture.
  • Do not co-sign on any type of loan for any person. Every loan that has your name on it, even as a co-signor, has an impact on debt-to-income ratios.
  • If you receive some type of large windfall during the loan process, hold on to the money until the mortgage process is complete. A significant deposit in to a checking or savings account after you have applied for a mortgage raises red flags for lenders.
  • If you had a certain balance in your savings account when you were pre-approved for the mortgage, don’t touch that money. You may need the money for closing costs.

For additional program information, see our Conventional Loans page, contact us with questions or apply online for a free consultation.

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Category: Conventional Loans

About Inlanta Staff:

Welcome to our mortgage blog. As a mortgage bank we can provide loans using our own funds or we can use the loans and guidelines provided by one of our many lenders. Our wide array of lender relationships provides our customers with the best loan programs currently available today, whether it is conventional lending, FHA purchase loans, or VA loans.

 

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