Whether you’re a first-time homebuyer, or repeat homebuyer, the homebuying process can be filled with anxiety; however, with the proper preparation, many common mistakes can be avoided.

We’ve all heard horror stories (or lived through them ourselves) of a purchase falling apart before closing; however, most, if not all, of those deals falling apart are 100% preventable. While some roadblocks are part of the process, be sure to strengthen your chances of a seamless process by avoiding the following mistakes.
 

1.    Opening New Lines of Credit

From opening up a new Visa card to opening up a store credit card, having your credit run & increasing lines of credits during the mortgage process can have adverse effects on the mortgage process, including your ability to qualify. Wait until after you close to purchase that new couch on the store credit.
 

2.    Changing Jobs or Switching to Part-Time

Wait until after you close to switch jobs or careers. Underwriters need at least 1 month’s pay stub at your current place of employment to verify your income and employment. In order to use part-time income to qualify, you must show a two-year history of working part-time.
 

3.    Purchasing a New Car or Big-Ticket Item

Even if the purchase of this item doesn’t deplete your assets you planned to use toward the purchase of your home, or as reserves, the monthly payment of this new liability must be included in your DTI (debt to income) ratio.
 

4.    Missing a Mortgage or Credit Card Payment

Prior to closing, our processing team runs a credit refresh to ensure that all liabilities have been paid on time and that new lines of credit were not opened during the process.
 

5.    Depositing Large Amounts of Cash

We need a paper trail for every deposit. If you plan to get a gift for your down payment, the gift must come in the form of either a check or wire, not cash.
 

6.    Cosigning With Someone on Debt

Although your intentions might be pure, and the person who you are cosigning for will be responsible for all of the payments, if you cosign a car, home, student loan, or any other line of credit for another person during the process, that monthly payment will be included in your DTI ratio. For a monthly liability that you cosigned but someone else pays, we need payments for 12 months as proof of responsibility so we can eliminate liability from your DTI.

When in doubt, call one of our loan officers to answer any of your questions or concerns. We are here to ensure that you close on time with as few roadblocks as possible.