Monadnock Region Buyer Mistakes To Avoid

If you are planning to purchase a home within the next year, there are certain mistakes that you should avoid as they can affect your mortgage options. The following are Monadnock Region buyer mistakes to avoid.

Monadnock Region Buyer Mistakes To Avoid

Large Expenses

Lenders evaluate your income compared to your debt. Increasing debt on either your credit cards or with new loans can dramatically alter that ratio. Usually, the more debt you have, the less you will qualify for on a mortgage. This is particularly important after you have completed your formal loan application. Lenders will re-check your credit report shortly prior to settlement to confirm that your figures has not significantly changed. If you gained additional debts, this can result in you not being able to buy the property.

Changing Jobs

As part of the loan process, lenders look at your past and present earnings to assess your ability to make payments. A consistent history in earnings is very important. Shifting employment prior to or during the mortgage process may cause difficulties with qualifying for a mortgage, particularly if the new employment is in a new field or at a lower pay. During the loan process, it will also cause delays while the new employment is confirmed.

Switching Banks

Mortgage underwriters usually analyze your bank account statements over the past several months. Moving funds to a new account can lead to problems. It is best to leave funds in the same place until after the loan closes.

Cash Deposits

Most types of mortgages require that you use a specific percentage of personal money for the down payment and/or settlement fees. Banks verify this by looking through bank statements. Any cash transactions are carefully scrutinized. You may be asked to verify the source of any transactions.

Shutting Down Accounts

While getting ready to purchase a home, you may decide to diligently pay off debts. Prior to starting this, consider speaking with a mortgage professional on whether this is necessary based on your financial standing. If you do pay off bills, do not close the accounts as this may lower your credit score. It is best to keep the accounts open without a balance.

Additional Guidance on Monadnock Region Buyer Mistakes To Avoid

The above Monadnock Region buyer mistakes to avoid is only the most common mistakes. As a local real estate consultant, I can provide you with a list of local lenders in the Monadnock Region area. You may reach me, Ken Moller, at The Mollers via phone at 603-525-4211 or email at