Branch Manager / Certified Mortgage Advisor at The BuyerPower™ Lending Team
When navigating the home buying process, it is essential to understand what actions can impact mortgage approval and what steps can be taken to ensure a smooth experience. Generally, buyers should avoid certain financial activities that can affect their debt-to-income ratio, credit score, and overall mortgage eligibility. For instance, opening new credit cards or lines of credit can negatively impact credit scores, as it may indicate to lenders that the buyer is taking on more debt than they can handle.
In most cases, making large purchases, such as cars or furniture, can also be detrimental, as these purchases can increase debt levels and affect the debt-to-income ratio. Typically, lenders prefer a debt-to-income ratio below a certain threshold, and large purchases can push this ratio above the acceptable limit. Additionally, making large deposits or withdrawals without a clear paper trail can raise concerns about the source of funds, potentially delaying the mortgage approval process. Changing jobs or employment status can also be problematic, as lenders often prefer borrowers with stable employment histories.
Buyers should also avoid co-signing on other loans, as this can add to their debt obligations and affect their credit score. Missing existing bill payments can significantly lower credit scores, making it more challenging to secure a mortgage. On the other hand, keeping current accounts stable, saving documentation for any financial changes, and staying in close contact with the loan team can help ensure a smooth mortgage process. Responding quickly to document requests and continuing to save for closing costs are also crucial, as these actions demonstrate responsibility and preparedness to lenders.
“Thank you so much Ryan and Kelsie! You both made it happen and I could not be any happier :) The transaction was so smooth! I felt confident throughout the whole transaction working with you! Thank you once again.”
“Appreciate the speed and knowledge and problem solver mindset! Thank you!”
“Great communication from Ryan and his team! They were so responsive and made the whole process really smooth.”
“There was always someone immediately available to answer questions and the entire process was very transparent. Phenomenal service.”
“The group communication”
“It closed.”
“I understand the whole point of same as cash financing is to have an extra negotiating point of being able to close in such a short window. but after the sellers wouldn't cover our closing costs unless we financed them into the loan, I wish we would have gotten an option to go with a traditional escrow period versus the 8 day contract. We Also were not aware that we were under contract to close on the 26th before thanksgiving and felt like we were forced into signing even though the house hadn't had the repairs we wanted done, and we hadn't gotten a chance to look through it and approve it . the fact that we found out about being in a contract to close by that date from the sellers agent telling us that if we don't sign we could be liable for the costs of some of the repairs made the closing day feel forced and rushed. Ryan and his team are very helpful and knowledgeabl, I just wish we could have gotten an option to have a slower closing process especially being our first time buying a home.”
“You helped save the deal! You created trust with my buyer and gave creative and helpful techniques to make your t financially doable for them to purchase their first home.”
“Ryan and Kelsi are next level when it comes to lending knowledge when guiding a client and myself through the many ways a transaction can workout for them.”