- Not checking your credit score before applying
- Ignoring pre-approval
- Overlooking hidden fees and costs
- Changing jobs before closing
- Making big purchases before closing
One of the most important factors in determining your eligibility for a mortgage is your credit score. Before you start the application process, make sure to check your credit score and take steps to improve it if necessary.
Getting pre-approved for a mortgage can give you a clear picture of how much you can afford to borrow. Ignoring this step can lead to wasted time and disappointment if you find a home you love but can’t afford.
When applying for a mortgage, it’s easy to focus on the interest rate and forget about the other fees and costs that come with it. Make sure to factor in closing costs, appraisal fees, and other expenses before committing to a loan.
Lenders want to see stable income before they approve a mortgage. Changing jobs before closing can jeopardize your application and make it harder to secure a loan. Wait until after closing to make any major career changes.
Large purchases, such as a car or furniture, can impact your debt-to-income ratio and affect your mortgage application. Avoid making big purchases before closing to ensure a smooth approval process.
Conclusion
Applying for a mortgage is a complex process that requires careful attention to detail. By avoiding these common mistakes, you can improve your chances of getting approved for a loan and buying the home of your dreams.
FAQs
- What is a good credit score for a mortgage?
- How long does pre-approval last?
- Can I apply for a mortgage with a new job?
A credit score of 620 or higher is generally considered good for a mortgage. However, the higher your score, the better your chances of getting approved for a loan with favorable terms.
Pre-approval typically lasts for 60 to 90 days, depending on the lender. After that time, you may need to reapply if you haven’t found a home to purchase.
While it’s possible to apply for a mortgage with a new job, it’s generally better to wait until after closing to make any major career changes. Lenders prefer to see stable employment history before approving a loan.