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Things to avoid before applying for a mortgage

FALLBROOK – Planning to buy a home? The key is to prepare and maintain excellent financial health. And we’re not just talking about the down payment. Improve your chances of getting approved for a home loan and be eligible for better interest rates and terms – here are some things to avoid before applying for a mortgage:

Making big purchases

If you just bought a car or did advance shopping for furnishings, this will take a big hit on your credit record and debt-to-income ratio and could hurt your mortgage application. Avoid making any credit splurges at all costs if you’re planning to buy a home soon.

Switching jobs

This is because lenders like to see stability in your employment history. It’s best to wait after you have secured the mortgage before making any bold career changes.

Ruining your credit score

A credit score is precious. Know your credit score: Your credit score is one of the most important factors that lenders use to determine your eligibility for a mortgage. Before you apply, make sure you know your credit score and take steps to improve it if necessary.

The following might mess up your credit score:

• Applying for new credit

• Closing accounts

• Making late payments

Making large deposits

Lenders might see large one-off deposits as red flags. They will usually require additional documentation for these instances. Generally, lenders like a consistent pattern of income and spending.

Skipping pre-approval

Before you start looking at homes, get pre-approved for a mortgage. This will give you a better idea of how much you can afford to spend and will also show sellers that you are a serious buyer. Work with a reputable lender who is transparent about their fees and rates and will be willing to answer any questions you have about the mortgage process. Contact us for a lender referral.

If you’re all set and interested in being qualified to purchase a home right now, please feel free to contact the agents at Broadpoint Properties.

This article first appeared on Broadpoint Properties' website,

Submitted by Elisabeth Hartig Lentulo, broker associate, who can be reached at 760-532-1057, [email protected] or CalBRE #01904564


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