Factors That May Delay Mortgage Approval
When applying for a mortgage, you need to send a huge amount of paperwork. Before your loan is officially approved, one wrong step can stall the process and lead to more paperwork. Credit.com points out several factors that can hinder your approval.
After closing on my house and after getting the final mortgage approval, I realized that it was safe to go ahead and open the credit card I was looking at to earn bonus points . I was wrong – our mortgage company contacted me almost immediately, asking why I opened the card and that I provided a written explanation – and I didn’t even activate it!
Credit.com explains that there are a few more events that can cause problems. Applying for another loan or line of credit may be pretty obvious, but there are several other factors that can delay the process, from large deposits to new sources of income. Here are some tips they offer:
Keep track of your expenses: Now is not the time to buy new furniture or a new car that will fit your new home. When lenders track your loan usage during the mortgage application process, an increase in balance can negatively impact your approval …
“Don’t change jobs and maybe even discourage promotions. ” Lewis. “Almost every type of loan requires a two-year history of commissions / bonuses / overtime,” Lewis said.
Keep your cash deposits to a minimum: You may think that you need to fund your bank account before applying for a mortgage. But if you’re going to do that, you probably don’t want to use cash. Each of your large deposits needs a source, and cash may seem too mysterious….
This can be a delicate process, so it’s worth knowing what triggers your lenders might be triggering. For more details, navigate to the full Credit.com history at the link below.
Photo by Cameron Parkins
6 Ways To Avoid Losing Your Mortgage After Prior Approval | Credit.com