Congratulations! You’ve made the decision to purchase a new home! If you are financing your purchase, below are common mistakes a Buyer should avoid as they can adversely affect your ability to obtain your Financing Commitment. Note: A pre-approval letter does not guarantee a mortgage.
- Opening New Lines of Credit: Your Lender will be reviewing your income and debt prior to issuing a Financing Commitment. Any new lines of credit that have been opened since the pre-approval letter was issued can adversely effect your being approved for a mortgage.
- Changing Jobs: Your job history is an important factor. Your Lender will review your work history to make sure your job is secure and that you have the ability to pay your mortgage.
- Credit Card Limits: Your Lender will be comparing your amount of income to your amount of debt. If your credit cards are at their limit, it can negatively affect the Lender’s ability to issue you a Financing Commitment. The Lender needs to be sure you have the ability to pay your mortgage and all your bills, including credit cards.
- Withdrawing cash from your savings account to pay off debt: By withdrawing cash from your savings account to pay off your debt, it may affect your income to debt ratio.