Applying for a mortgage loan is one of the most important things that you will ever do if you plan on purchasing a home in Bend Oregon but sadly many people make common mistakes before applying for a mortgage loan and they actually make the process of getting approved harder than it has to be.
To save you time and money, in today’s post were going to break down the top 5 things you should not do if you plan on applying for a mortgage loan.
#1 – Do Not Change Jobs or Become Self Employed
It’s no secret that lenders are looking for stability when people apply for mortgage loans and part of your stability is your ability to repay your mortgage loan that’s why it’s better to hold off on changing jobs or starting a business at least until after you’ve purchased your home.
#2 – Do Not Purchase a New Vehicle
This tip is super important because, lenders will be analyzing your ability to repay your mortgage loan and if you decide to lease a new vehicle that will only hurt your chances of getting your mortgage loan approved because, you will have more debt to pay versus income to pay your mortgage.
#3 – Do Not Get Behind On Your Bills
During the process of approving your mortgage loan application your lender will be analyzing your credit history and they will know if you’ve been able to pay your bills on time or not that’s why it’s important to pay every bill on time including smaller bills because, late payments or non-payments will be added to your credit report.
#4 – Do Not Spend Your Down Payment Money
Although it may be tempting to spend the money that you’ve saved for a down payment on a home it’s vital to keep that money safely tucked away in your bank because, spending that money now means you will have less money later on when you really do need to come up with the money needed for a down payment on a home.
#5 – Do Not Pull Your Credit Report
Knowing your credit score is good but doing it multiple times during the year, especially before applying for a mortgage loan is bad because, originating multiple inquiries on your credit report can actually hurt your credit score so it’s best to leave your credit report alone especially if you know that you’ve been paying your bills and are staying on track financially.
For all of your Real Estate needs contact me today by calling (541) 383-1426 or click here to contact me through my website.