Some people say getting approved for a mortgage loan is one of the most daunting process’ they have ever gone through. What if you went through the whole process of getting approved for a mortgage for that dream house, then within days of getting your money to move-in the financing falls through?
Here at CHM Lending, we care deeply about each client and do everything we can do to avoid a Mortgage not closing, with that being said there is only so much we can do to prevent it from happening.
In efforts to avoid Mortgage “explosions” we have created the 5 “deadly sins” during the mortgage process.
- Making any big purchases (car, furniture…ect).
Believe it or not significant debts such as a $15,000 auto loan will significantly add to your monthly expenses. The Underwriter could decide with your new monthly payment that you cannot afford a mortgage anymore and could deny your mortgage during the process.
- Applying for a new credit card.
Whenever applying for a credit card lenders will do a hard inquiry on your credit and it will affect your score negatively. Did you know your credit can be pulled at any time during the mortgage process; any negative changes to your credit can risk the interest rate going up or the loan being denied before closing!
- Switching Jobs.
During the mortgage process we will verify your employment multiple times. Switching your job during the mortgage process will raise red-flags to the lender. Changing jobs could affect your income, payment structure, and work experience. This could result in the mortgage needing to be revised or DENIED!
- Not Being Honest with your Loan Officer.
If you are not honest with your loan officer they will not be able to effectively shop for you and you may not qualify for certain programs that you thought you could. Underwriters will find any discrepancies during the process and will stop the process until they find the correct information.
- Make a large cash deposit into your bank account other than your paycheck.
Mortgage lenders are required to document where all money going toward closing your loan is coming from. All funds used in the mortgage process need to be sourced and seasoned. Sourcing is finding out exactly where the money came from. Seasoning means that money has to be in a bank for a certain amount of time it usually 60 days or more. If you deposit a large amount of cash that is not sourced or seasoned the lender could need to find out exactly where the money came from and wait at least 60 days for the money to season.