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You’ve decided that the time is right and you’re getting preapproved for a mortgage so you can start looking at properties. Awesome news! But just because you’re getting preapproved, doesn’t mean you can’t sabotage your own efforts without even knowing it.
When you’re applying for a mortgage, avoid doing these three things which could put your application and your ability to acquire your future dream home at risk:
Making A Major Life Change
When it comes to preapprovals, your lender is basing your ability to secure a mortgage on a couple factors they’re going to assume will remain the same throughout the process: your income and employment status.
If you’ve been thinking about making a career change, taking the dive to pursue entrepreneurship or adding more debt to your pile by investing in something else simultaneously, think again. These changes can cause serious problems that could result in losing your lender at a critical time. Do yourself a favour and hold off on any major life changes!
Underestimating The Importance Of Your Credit
Once you decide to start looking for a home, it can be tempting to start hunting for new furniture, TVs, patio accessories, etc. for your soon-to-be new home. Resist the temptation until after your mortgage has been funded or you’ll risk higher credit utilization which could lead to a lower credit score, and as a result, drop you below the minimum requirement for that lender.
The last thing you want to do is jeopardize your ability to get preapproved because you just couldn’t wait to buy a new projector and screen for your dream home movie theatre room.
Staying updated on your credit score and being aware of your credit habits, is critical when it comes to preapprovals and accessing the best interest rates possible. Put down your credit cards and walk away … at least until you’re funded!
Making Errors Or Omitting Information
When you apply for a home loan, you’ll be required to provide a number of important documents and pieces of information. This is a large amount of money you’re being given, and as such, there are a lot of boxes that need to be checked off in the process.
If you fail to provide items on time, include requested information, make errors on the forms or knowingly provide false data, you risk too much time elapsing due to back-and-forth emails and communication to make things right, which could derail the whole real estate transaction. Even worse, you risk charges of fraud, which could lead to your entire application being rejected.
Take your time reading over the requirements, make a list of what’s needed and stay organized as you move through the process so you don’t risk making any costly mistakes.
Buying a home is a big decision, and getting preapproved for a mortgage is the first step in that very exciting process. Do your homework, take the time to review paperwork and ask as many questions as you need to ensure you understand the next steps. Need some extra support as you embark on this journey? Contact us to learn more about how we can help!