If you’re preparing to purchase a home this fall in Indianapolis, you may have already started researching the home buying process. There are many lists of things to do as you prepare: save for a down payment, get your credit in order, find a mortgage broker, etc., but our team at GVC Mortgage has put together a list of things not to do. We want you to educate yourself so you don’t do something without thinking and end up getting declined or having your interest rate rise!
- Don’t Switch Jobs– You were pre-qualified by your lender based on your job with your current employer, and any change to that standing can affect your loan. This also includes retiring or becoming self-employed.
- Don’t Finance Anything– Wait to purchase anything that you’ll need to finance. This includes furniture, appliances, vehicles, etc. Barring a cash transaction, the financing of any big-ticket items can increase your debt-to-income ratio.
- Don’t Change Banks– You want your bank history to show stability; switching banks or transferring money from one account to another can send the wrong signal to a mortgage loan officer.
- Don’t Make Late Payments– You’ve worked so hard to keep your credit score up, so don’t stop now! Being late on your credit card payments can lower your credit score, which might affect your standing with your lender. You need a track record of financial responsibility to show you can manage your money.
- Don’t Make Unexplained Deposits– Mortgage lenders like your down payment funds to be in your bank account for at least two months. When money seems to appear out of nowhere, you can run the risk of a lender second-guessing your financial standing. If you do have a large amount of money to deposit, be sure you can explain it, or wait to deposit it until after your loan goes through.
- Don’t Lie On Your Application– Use common sense. Things like not disclosing your debts or inflating your income will affect your ability to even qualify for a loan. And, if you cannot qualify for a loan, you will never be able to buy a home.
Find Out More
Now that you know what not to do, let us help with your pre-approval process or explore your mortgage options. Contact GVC Mortgage today at (317) 564-4906. Our team of home loan professionals serves home buyers just like you every day. Our office is convenient for anyone in the Carmel, Fishers, or greater Indianapolis area. Get one step closer to home ownership by calling us today.