10 Things New Albany Home Buyers Should NOT do when Applying for a Mortgage

Applying for a mortgage is a process that takes a little time. Unfortunately, many people think that once they are pre-approved, they're done. That simply is not the case. Below are things NOT to do while trying to obtain a loan.

• Do NOT change jobs!
• Lenders need to know that you have steady income. They will verify your employment usually twice, initially when the application is filed, and again just prior to closing.
• Do NOT co-sign for a loan with someone else!
• This could have a negative impact on your credit, not to mention it will increase your debt-to-income ratios, which lenders rely on.
• Do NOT buy a new car!
• Again, this will have an impact on both your credit and debt-to-income. So don't buy a car unless you plan on living in it!
• Do NOT go crazy with your credit cards!
• Don't start buying things in excess and putting it all on your card...and don't start skipping your payments either. Lenders need to know you are good at repaying your debt.
• Do NOT spend your down payment!
• Do some research to find out how much money you'll need for a down payment and closing costs. Set that money aside and leave it alone!
• Do NOT lie...or "not tell the whole truth"!
• Lenders will see everything on your credit, so leaving information out or lying about it will not get you anywhere.
• Do NOT finance appliances or furniture for the house.
• I know it can be tough. You really want to start getting things for your new home! Do NOT finance them! Do you sense a theme yet?
• Do NOT apply for credit anywhere!
• Every time you apply it has a negative impact on your credit. Lenders will check credit before closing and if there is anything new, more documentation will be needed.
• Do NOT make large deposits without checking with your lender!
• Lenders want to know where your money is coming from. So if a relative decides they want to help out and give you some money for your home, don't put it in the bank until after you talk to your lender.
• Do NOT pay off collections!
• Paying off collections actually has a negative impact on your credit, so wait until after you close to pay it off.