Potential mistakes that a home buyer can make that could jeopardize their loan approval

I’m going to go over some very important rules of thumb for buyers who are under contract to buy a home, and are using a loan to make the purchase.

These are a few of the biggest potential mistakes you can make.

1. MAKING LARGE PURCHASES OR APPLYING FOR NEW CREDIT - Any significant changes to your financial situation can impact your eligibility for the loan or the interest rate you qualify for.

This means that while you’re applying for a mortgage and waiting to close on your home, it is not the time to finance a new car, or a new living room set, a washer or dryer, or apply for a new credit card. These actions can raise your DTI (Debt To Income ration) and will seriously jeopardize your loan approval.

2. CHANGING OR QUITTING JOBS - Changing jobs or quitting during the loan process raises major red flags for lenders and gives serious doubt about your stability and reliability.

If you have to change jobs during the home buying process, let your lender know as soon as possible so you can get them whatever documentation they need.

Ideally though, it’s best to wait until after you’ve closed on the home before you pull a Johnny Paycheck and tell your boss to ‘take this job and shove it’

3. FAILURE TO DISCLOSE ALL INFORMATION TO YOUR LENDER - from the time you pre-qualify for a loan and throughout the entire loan approval process, be very upfront and transparent with all information. If they’re are issues that could impact your qualification for a loan, it will likely come out eventually, better to know sooner than at the last minute so there is time to deal with it.

4. NOT ASKING QUESTIONS - The home buying process involves numerous decisions and unfamiliar terminology. Don't hesitate to ask questions, no matter how big or small they may seem.

Ask questions about the different loan programs available, the interest rates and fees associated with each, how long the interest rate is locked in, and the overall process involved in obtaining a mortgage.

This will help you to select the best options for your situation.