6 Things NOT To Do When Applying For A Home Loan
Keeping things consistent throughout the property buying process will help ensure you have a predictable and stress-free experience.
Here are 5 tips to help you getting your home loan.
1. DO NOT CHANGE YOUR MARITAL STATUS
Your marital status affects how property is registered in your name. Be sure to make your mortgage originator or home loan consultant aware of any changes in your marital status so that documents can be prepared correctly.
2. DO NOT CHANGE JOBS
A job change may result in your home loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Do not think you are safe because you have received an approval in principle earlier in the process, as the bank may call your employer to re-verify your employment just prior to approving the loan.
3. DO NOT SWITCH BANKS OR MOVE YOUR MONEY TO ANOTHER FINANCIAL INSTITUTION
After the bank has verified your funds at one or more institutions, the money should remain there until needed for the purchase.
4. DO NOT LEAVE UNUSED ACCOUNTS OPEN
When financial institutions assess your credit status they will investigate all recorded debt in your name. It is therefore advisable to close all unused accounts where possible – as the more access you have on record, the lower your credit score will be.
5. DO NOT PAY OFF EXISTING ACCOUNTS UNLESS YOUR HOME LOAN CONSULTANT REQUESTS IT
If your mortgage originator or home loan consultant advises you to pay off certain bills in order to qualify for the home loan, follow that advice – as that is necessary to improve your affordability score. Otherwise, leave your accounts as they are until your home loan is registered against your new property.
6. DO NOT MAKE ANY LARGE PURCHASES
A major purchase that requires a withdrawal from your verified funds or increases your debt can result in your not qualifying for the loan. The bank or financial institution may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your home loan approval.