It is easy for you to get caught up in the elation of buying a new home, particularly for the first-time buyers. The sense of achievement, the upgrade to your life, and getting affordable interest rates on the mortgage, are all the benefits that come with getting your house. Often, though, potential homeowners take actions that end up delaying the mortgage application procedure.
Wasatch Peaks Credit Union shares these pitfalls to avoid when applying for a home loan in Ogden.
Failing to Get Preapproved
One integral aspect that the loan applicants forget is to get preapproved to ascertain that they are eligible for mortgage financing. Mortgage loan preapproval is essential as it is during this process that the financial lender examines all your financial statements including the credit report, income, and assets.
Unfortunately, some homeowners cannot differentiate between prequalification and preapproval. In the former, the lending institution makes a guesstimate into the amount of mortgage loan you qualify for. Preapproval means that you have been approved depending on the facts of your financial background.
Changing Your Job
The offer of a new and well-paying job can be enticing. However, you should refrain from job-hopping if you intend to apply for a mortgage a few months later on. To the lender, frequent change of jobs shows job instability. Besides, banks and lenders require that one is employed in one field for a particular duration to qualify for a home loan.
Altering Your Credit Behavior
Even if you usually pay all your bills on time, you should not use up all your credit. Using a great deal of your credit lowers your credit score and jeopardizes the mortgage approval. Usually, the lenders will get the impression that you rely on borrowing money. Also, shifting your credit around by opening or closing credit card, damages your credit score. Doing so distorts your credit utilization ratio, which can result in disapproval of the home loan Ogden.
In the past, giving false information regarding your income, employment or credit score, in the mortgage application, was no big deal. Presently, lenders and banks are very stern on individuals who provide incorrect information. Any details that you write down on the home loan application form are usually ascertained right down to the decimal point.
There are certain mistakes that you should avoid if you want your home loan sanctioned. For one, avoid changing your job. Shifting from one occupation to another reflects job instability. Moreover, always provide correct details when filling in the mortgage application document.