There’s a massive amount of paperwork you have to send over when you apply for a mortgage. Before your loan is officially approved, one false move could stall the process and lead to even more paperwork. Credit.com points out a few factors that can hold up your approval.
Photo by Cameron Parkins
There are a few other events that can cause issues, Credit.com explains. Applying for another loan or line of credit may be a fairly obvious one, but there are a few other factors that can hold up the process, from large deposits to new sources of income. Here are a few tips they suggest:
Watch Your Spending: Now isn’t the time to shop for new furniture or get a new car to match your new house. When lenders track your credit usage during the mortgage application process, balance increases can have a negative impact on your approval…
Don’t Change Jobs & Maybe Even Stall a Promotion: New jobs, becoming self-employed or even a promotion that is a lower base but higher commission could all put your mortgage into jeopardy, Lewis said.
Keep Your Cash Deposits to a Minimum: You might think you need to fluff up your bank balances before applying for a mortgage. But, if you’re going to do this, you probably don’t want to use cash. Each of your large deposits needs a source and cash can be seen as too mysterious….
It can be a sensitive process, so it’s worth knowing what triggers can set off your lenders.