Entering the real estate market as a homebuyer is an exciting (but complex!) endeavor. One crucial aspect of the homebuying process for most buyers is securing a mortgage, which can come with its own array of challenges. If you're applying for a mortgage, there are costly errors to avoid before closing!
In this brief guide, Jenni Tennant, a real estate professional with eXp Realty and former mortgage underwriter, shares valuable insights to help you navigate the mortgage process successfully.
Top 5 Mortgage Mistakes to Avoid:
Don't Deposit Large Sums of Cash: Lenders require transparent documentation of your finances. Avoid depositing large cash sums, as they can raise suspicion and complicate the verification process.
Avoid Making Large Purchases: Large purchases, whether for a new car or luxury vacation, can impact your credit score and debt-to-income ratio, jeopardizing your loan approval.
Refuse to Cosign Loans: Cosigning a loan makes you liable for repayment. Hold off on any financial commitments until after your transaction closes to mitigate risks.
Maintain Consistent Bank Accounts: Lenders need clear visibility of your financial history. Avoid switching bank accounts during escrow, as it can disrupt the verification process.
Refrain from Applying for New Credit: New credit inquiries can affect your credit score and loan eligibility. Steer clear of applying for new credit cards or loans during the mortgage application process.
Navigating the mortgage process requires diligence and foresight. By avoiding these common mistakes, you can enhance your chances of securing a mortgage and achieving your homeownership goals. For personalized guidance and support, don't hesitate to reach out to our team at eXp Realty!