To help your homebuying process go smoothly, I’m sharing ways that you can avoid some of the most common mistakes I have seen in my years as a mortgage lender.

Over the past few weeks we have talked about Mistake #1: Not getting pre-approved, Mistake #2: Assuming all lenders are the same, and Mistake #3:  Assuming money saved for a down payment is the only cost of the loan.  Today we are touching on one more.

Mistake #4: Changing your financial standing after pre-approval

Your pre-approval is based on your credit and financial standing at the time you were approved. It is expected that standing will remain unchanged (or improve) through your closing. But in markets where house-hunting can take months, how do you ensure it remains that way?

My best recommendations are:

  • Do NOT apply for new credit, or take on additional debts
  • Don’t spend the hard-earned money that you’ve been saving for your down payment
  • Don’t make large cash deposits (lenders need to have a paper trail for all large deposits, and cash deposits are a no-no)
  • Don’t quit your job (for the sake of your home and future, do NOT)

If you are considering a change, but aren’t sure if you should, consult with your loan officer first. If the car salesman promises his credit check won’t appear on your credit report do NOT believe him! If you want to buy that appliance set on credit prior to closing, talk with your loan officer, and prepare for her to say “wait.” Above all, be forthcoming about everything so that your loan officer can come alongside you and help you in this process.

I understand that the process of getting a mortgage can seem super intimidating. I hope you’ll believe me when I say that the process really can be painless if you educate yourself on the common mis-steps, and avoid them. It’s key to note that sometimes the process is unavoidably challenging for things outside of your control. This is where it is incredibly important for you to be able to trust your lender.  Trust that they will work tirelessly for you because you are far more than a closed loan—you are a person in their community, who they truly want to help.

Thank you so much for following along! Please let me know if you have any questions. I’m here and am happy to help.