5 Mistakes to Avoid When Signing a Mortgage

Buying a house is an exhilarating and gratifying experience. Nevertheless, mortgage prerequisites must be fulfilled before the property becomes yours to keep. This process can be long and stressful, and it is important to do everything right so that you can get to the finish line. To ensure that you get the mortgage of your dreams, there are a few things that you should avoid doing during the process. In this article, we will discuss the 5 major things that you need to avoid during this process.

1. Don’t Change Jobs During the Mortgage Process

As tempting as it may be to switch jobs to secure more income, it is not the best move. Lenders like stability, and changing jobs can raise a red flag. Lenders want to see that you have a stable income, and changing jobs may make it difficult for them to verify your income. In addition, if you change jobs during the mortgage process, the lender may need to start the verification process all over again, which can delay the closing of your loan.

2. Avoid Making Large Purchases

The mortgage process is not just about your credit score – it is also about your debt-to-income ratio. Your debt-to-income ratio is the ratio of your total monthly debt payments to your gross monthly income, and it is used by lenders to determine how much mortgage you can afford. If you make large purchases, it can increase your debt-to-income ratio, which can negatively affect your mortgage application.

3. Wait to Buy Furniture and Other Big Items

Buying new furniture or appliances for your new home can be exciting, but it is not the best idea to do so during the mortgage process. If you buy furniture or appliances, it can impact your credit score and your debt-to-income ratio. As a result, it is best to wait until everything is complete to buy furniture and other big items.

4. Don’t Open any New Lines of Credit

This is not the time to apply for new credit cards or loans. Opening new lines of credit can negatively affect your credit score and your debt-to-income ratio. When lenders see that you have taken on new debt, they may consider you a higher risk, which can make it difficult to secure a mortgage.

5. Avoid Co-Signing for Any Loans

Co-signing for a loan during the mortgage process can have a negative impact on your mortgage application. If you co-sign for a loan, you are responsible for the debt if the borrower does not pay. This added debt can increase your debt-to-income ratio, making it difficult to secure a mortgage.

Understanding the Mortgage Process

The process can be challenging, but by avoiding these five things, you can increase your chances of getting a mortgage. Remember, lenders look for stability and consistency, and any sudden changes during the mortgage process can have a negative impact on your application. Avoiding these pitfalls can help the process go more quickly and smoothly. By following these tips, you can increase the chances of getting the mortgage of your dreams.

Union Capital Mortgage

If you are looking for a reliable mortgage partner to help you in the process of getting the home of your dreams, then look no further than Union Capital Mortgage! Our experienced team can assist you every step of the way, from providing pre-qualification advice and helping you identify the best loan product for your needs, to guiding you through the entire application process. Contact us today on our website or give us a call at (440) 585-5626 to learn more about how we can help you get the home of your dreams!