4 Tips to Make Sure the Mortgage Process Goes Smoothly

08/30/2019

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A smooth mortgage process means you can close on your dream house sooner. These tips can help you prevent any problems with the mortgage process that can slow things down: 

Avoid big changes to your credit score. From the time you get a pre-approval until the time you close on a house, you want to avoid big changes to your credit score. Taking out a new loan, closing a credit card, or missing a loan payment can all affect your credit score. Even paying off all your debt can drop your credit score and affect your approval chances.

Avoid major changes in employment. Lenders want to know that you have a reliable job that will allow you to make your mortgage payments. Quitting your job or changing jobs can lead to questions of job security. It can also affect your income, which is factored into the amount of a mortgage that you are approved for.

Minimize credit utilization. One of the things that your underwriter will consider is your debt-to-income (DTI) ratio. If you increase your credit utilization on your credit cards, this can affect your DTI and also your chances of being approved.

Avoid undocumented cash. Your credit is not the only thing under review during the mortgage application process. Your lender will also evaluate your bank accounts and undocumented deposits or withdraws can lengthen and complicate the process. 

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