7 Mortgage Mistakes Sabotaging Your Dream Home (and How to Avoid Them in 2024)
Found your dream home? That’s amazing! But before you picture yourself sipping lemonade on the porch swing, there’s one crucial hurdle: the mortgage. Don’t let a silly mistake derail your homeownership dreams!
In this post, we’ll unveil the 7 mortgage mistakes that can torpedo your application and show you how to dodge them like a ninja.
Mistake #1: The Job Switcher
Thinking about a career change? Itching to chase that passion project? Pump the brakes! Lenders love stability. Hold off on major job changes until your loan closes.
Mistake #2: The Car Crazy Buyer
That new car is looking mighty tempting, but hitting the brakes (literally and figuratively) is key here. Big purchases can mess with your debt-to-income ratio, making it harder to qualify for a mortgage.
Mistake #3: The Credit Card Swiper
Put down the plastic! High credit card balances are red flags for lenders. Focus on paying down existing debt and resist the urge to swipe for anything non-essential.
Mistake #4: The Early Spender
Don’t raid your closing cost savings like a piggy bank! Those funds are crucial for securing the house. Treat them like the precious treasure they are.
Mistake #5: The Debt Denier
Honesty is the best policy, especially when it comes to your debts! Hiding them can slow down the process (or worse, get your application rejected). Be upfront with your lender about all your financial obligations.
Mistake #6: The Pre-Closing Splurger
That new furniture can wait! Resist the urge to splurge on anything major before closing. A sudden drop in your credit score can throw a wrench in the whole process.
Mistake #7: The Credit Inquiry Monster
Multiple credit checks can hurt your score. Get pre-approved for a mortgage before you start house hunting. This way, there’s only one inquiry on your credit report.
Conquering the Mortgage Maze
By dodging these sneaky mortgage mistakes, you’ll be well on your way to securing your dream home! Looking for more home buying tips and tricks? Stay tuned for future posts, or leave a comment below with any questions you have!
