Not checking your credit. “This should be your first step in applying for a mortgage,” says Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty. Check your score months before applying for a mortgage so you know where you stand, and have time to make any changes if necessary.
Not getting pre-approved. A mortgage pre-approval is one of the best things you can do to ease the home-buying process. During pre-approval, your bank checks your credit and examines your income, assets, and employment. “Before shopping for a home, get pre-approved,” advises Eisenberg. “Many sellers won't take you seriously otherwise.”
Applying for new credit AND a new mortgage. “Do not apply for a new line of credit before or during the mortgage application process – it hints at financial instability, and you're seen as a greater risk,” says Eisenberg.
Changing jobs. If you're thinking about switching jobs, then hold off on the mortgage application, or stick out your current position for longer. “While a change in the same field doesn't necessarily mean you will be rejected, a big change - like a brand new career - can be a red flag,” notes Eisenberg.
Not seasoning your assets. Uncle John is giving you $10,000 to put toward your mortgage? Terrific. Make sure it's in your account months before you apply for a mortgage. New funds do not equate to financial stability, and your underwriter will catch on.
For more information on obtaining a mortgage, please contact Louis Eisenberg, Prudential Towne Realty, 109 E. Main Street, Norfolk, VA 23510, leisenberg@prudentialtownerealty.com, (757) 572-7244, or www.LouisEisenberg.com
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