What not to do when applying for a home loan

After you have been through the mortgage application process and you have been pre-approved, here are some no-no's to steer clear of:

1) Do not take on any new debt - The temptation is strong. There are so many big purchases that people want to make in connection with a move: appliances, window treatments, furniture, etc. When you add to this the fact that, today, everyone offers easy terms and no money down -well, why not just do it? Answer: Because you will change what the mortgage industry calls your "debt-to-income ratios" (the relationship of your income to your debt).

2) Do not change jobs - If at all possible, try not to make a career move during the time between your mortgage application and the closing on the home you are purchasing. But, you ask, "What if it is a BETTER job, for MORE money in a DIFFERENT field? Still, try and wait until AFTER closing. One of the factors mortgage companies consider is length of present employment, they are partial to stability. At the very least, changing jobs initiates the need for more paperwork, and may delay your closing.

3) Do not pack too soon - Well go ahead and pack your clothes and dishes - but do not pack your bank statements, tax returns or other important paperwork. Most especially, do not pack your checkbook! More than one buyer has had closing delayed while a friend or relative hurried over with additional funds because the checkbook was in the moving van.

4) Do not lease or buy a new car - This should go under the general heading of "no new debt" -but it is highlighted here because for some strange reason, many buyers do run right out and get new cars during the time between mortgage application and closing. As with any debt, this will change your "debt-to-income ratios" and may cause you not to qualify for your mortgage.

In short, do nothing that negatively impacts your ability to qualify for your mortgage loan, or initiates a new round of paperwork. If you have any doubts about doing something that may affect your ability to qualify for your mortgage loan, please consult your loan provider before you do it.These suggestions are merely that - suggestions. No one is saying, flat out, that bad things will necessarily follow if you do any of the above. They are offered as cautions. Many buyers seem to view the mortgage application procedure as a static action, a snap shop of their financial lives at a given moment in time. It's not. It's an on-going process that takes into account everything you do right up until the day of closing.

If you have any financial questions - please give me a call at (509) 217-0907

Bill Bolton

Sales Manager/ Mortgage Consultant, OTCS, CBR

Countrywide Home Loans