16 Things NOT to do when Applying for a Mortgage Loan

You can unknowingly sabotage your home financing goals by making some obvious and not-so-obvious moves with your finances.

Check out the list below to see if you know the top 16 things NOT to do when you are in the process of buying or refinancing.

 Do Not:

1. Leave an existing job for any reason
2. Open new bank accounts
3. Close existing bank accounts
4. Deposit funds over $300 into a bank account*
5. Transfer money between accounts, unless receiving complete documetnation from your bank, itemizing all transfers
6. Allow your bank statements to go into a negative balance, even if you have overdraft protection
7. Buy new furniture, a car, or make any other major purchase*
8. Shop for furniture, a new car, or any major items, which may result in your credit being run
9. Apply for any new credit
10. Inquire about new credit or better rates on existing credit
11. Co-sign on any debt with a family member or anyone else
12. Ask a tenant to move out, or give your landlord notice that you are moving out*
13. Stop paying credit card debt
14. Stop paying any bills
15. Pay a bill in collections. If about to pay a bill in collections from a collection agency, try to pay it at closing**
16. Have a friend or family member pay for anything rleated to the purchase of the home (appraisal, earnest money, down payment, etc), since gifts are only allowed under certain guidelines.

We hope you find this helpful! – 16 Things NOT to do, when applying for a Mortgage Loan:

Contact me before you start your home financing process. I can answer your questions and provide advice on how to prepare for a smooth and successful loan closing!

Guest Post courtesy of:

Jeff Kobold
Branch Manager, Prospect Mortgage
891 Main St. Unit B
Osterville, MA 02655
Cell: 508-221-6254
Jeff.Kobold@prospectmtg.com
NMLS# 423207; Branch ID 603612
I Am licensed to originate mortgage loans in the following states: MA

*Check with me prior to making this change just to be sure it won’t affect your loan eligbilitiy.  **Paying a collection will greatly affect credit score and should be delayed (if at all possible) until the loan closes, then pay the collection at closing date. It will affect your score later, but won’t affect you getting the particular loan you are applying for.

Loan inquiries and applications in states where i am not licnsed will be referred to a Loan officer who is licensed in the property state. equal housing lender. Prospect mortgage is located at 15301 Ventura Blvd Suite D300, Sherman Oaks, CA 91403.  Prospect Mortgage, LLC (Unique Identifier #3295) is a Delaware limited liability company licensed by the department of Corpoations under the Carlifornia Residential Mortgage Lending Act and operataies with the following licenses; AK mortgage Lender/Broker License # AK3296; AZ Mortgage Banker License #BK0903027; to Check the license status of tyour CO mortgage broker, visit www.dora.state.co.us/real-estate/index.htm; GA residential Mortgage License License #16984; IL Residential Mortgage Licensee #6424; MA Mortgage Lender/Broker License #MC3296; MS Licensed Mortgage Co; MT Resdiential Moretgage Lender Licensee #120; NV division of Mortgage Banker #1173 and Mortgage Broker #3095; Licensed by the NH Banking Dept; Licensed Banker-NJ Dept of Banking and Insurance #9932414; Operates of Prospect Lending, LLC in Ny (Licnesed Mortgage Banker – New York States Department of Banking. This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are sunbject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under MN law, or any other applicable law.