The decision to obtain home financing should be approached with thoughtfulness and care. There are many things you can do to prepare for the mortgage process, but what about the things you shouldn’t do?

Here is a list of 5 things NOT to do before applying for a home loan:

  1. Don’t buy a car!

Avoid obtaining financing for a vehicle in the months leading up to your application for a mortgage, as it will negatively impact your debt-to-income ratio. Lenders use your debt-to-income ratio to determine your purchasing power by evaluating how much debt you have compared to how much income you bring in. The more debt you have, the less you will be able to borrow for a home loan.

  1. Don’t acquire furniture debt!

A common mistake made by borrowers is to seek out home furnishing credit lines prior to the closing of their home loan. Obtaining an additional line of credit while still in the mortgage process can slow down, or even stop, the funding of your loan.

  1. Don’t change jobs!

Changing jobs can impact your qualifying income. The more stability you can show in your employment situation, the easier it will be to determine how much you can qualify for.

  1. Don’t miss a credit card payment!

Most people don’t realize the negative impact missed payments can have on their credit score. Even one skipped payment can adversely influence your credit enough to prevent you from qualifying for home financing, so be sure to make all your monthly payments on time.

  1. Don’t let your bank account go negative!

Make sure the bank account you plan on using for your home financing is kept in good standing. A “non-sufficient funds” alert on your bank account can be a red flag to your underwriter and may lead to the inability to qualify for financing.

Remember, stability is key. The more consistent and established your finances are in the months leading up to applying for home financing, the more smoothly your mortgage process will go.

Are you ready to talk to a loan officer about your borrowing options? Find a licensed Castle & Cooke Mortgage, LLC loan officer near you, or call toll-free (844) 395-0183 today!

Castle & Cooke Mortgage, LLC® (NMLS #1251) is a leading independent mortgage lender headquartered in Draper, Utah, with locations across the United States.

Restrictions may apply. Not all who apply will qualify. Program qualifications & offerings are subject to change at any time. Equal Housing Lender. Castle & Cooke Mortgage, LLC is licensed in AL, AR, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, KY, MD, MI, MS, MO, NE, NV, NM, NC, ND, OH, OK, OR, TN, TX, UT, WA, WI and WY. Licensed by the Arizona Department of Financial Institutions, Arizona Mortgage Banker: BK-0908287. Licensed by the Department of Business Oversight, under the California Residential Mortgage Lending Act License #4130740. Regulated by the Colorado Division of Real Estate. Georgia Residential Mortgage Licensee, License #43759. Illinois Residential Mortgage Licensee. Licensed by the Mississippi Department of Banker and Consumer Finance. Ohio Mortgage Loan Act Certificate of Registration #SM.502008.000. Oregon Mortgage Lending License #ML-4090. Washington #CL-1251.

Information contained in this Blog does not constitute legal, financial, or other professional advice or services and should not be used as a substitute for professional advice. The purpose of the Blog is to provide Castle & Cooke Mortgage, LLC’s opinions and general guidance on certain matters related to mortgages. The reader accepts full responsibility for use of the information contained herein.