Financing Errors to Get Your Mortgage Denied

Financing Errors to Get Your Mortgage Denied

Financing Errors to Get Your Mortgage Denied

Getting a mortgage in 2017 is a lot different than it was in 2007. Make sure to avoid these vapid financing errors.

You got the pre-approval, found a home that meets both your aesthetic and financial budget, and even had your offer accepted. A dream come true! Nothing could possibly go wrong! Except that’s not entirely true. Murphy’s Law states that anything that can happen will happen. An unwise financial decision can cause everything you dreamed about to quickly turn into a real life nightmare. Make sure that your mortgage application gets approved by avoiding these dense financing errors.

  1. Moving Money Around

If you have been saving for a while and have some money in your savings, do not move this money while you wait for your mortgage application approval. It may not appear to serve many purposes, but this “stagnant” money shows your liquidity. Moving this money around can be a huge disaster on your loan approval.

  1. Applying for New Credit

If you apply for a new credit card or request a card limit increase in the months leading up to your closing, it likely won’t affect you too much. But trying to borrow more money from multiple companies at once suggests you are not very wise with your money and just accumulating debt you won’t be able to pay off.

  1. Taking a New Job

If you get a new job during the home loan process, you can rest assured knowing your lender will have many internal thoughts about you as it disrupts an already mundane process. Lateral moves are okay, but new fields are too risky for mortgage lenders.

Contact Elvin Wesley at Ranch & Coast Mortgage Group Inc. for all of your home loan needs throughout Solana Beach and San Diego County, as well as all of California.