When you apply for a mortgage, there are certain things you should and shouldn’t do to increase your chances of getting approved. Here are some key dos and don’ts to keep in mind:
DO:
- Get pre-approved for a mortgage. This will help you understand your budget and make a stronger offer on a home.
- Save for a down payment. A larger down payment can help you get a better interest rate and lower your monthly mortgage payments.
- Keep your current job. Lenders prefer borrowers with a stable employment history.
- Be honest on your mortgage application. Lying on your mortgage application is fraud and can have serious consequences.
DON’T:
- Apply for new credit. This can lower your credit score and hurt your chances of getting approved for a mortgage.
- Make large purchases before closing on your home. Large purchases can increase your debt-to-income ratio and hurt your chances of getting approved for a mortgage.
- Co-sign on a loan for someone else. Co-signing on a loan can increase your debt-to-income ratio and make it harder for you to get approved for a mortgage.
By following these dos and don’ts, you can have a smoother mortgage application process and increase your chances of getting approved. If you’re unsure about anything related to your mortgage application, it’s best to speak with a mortgage professional who can guide you through the process.
