If there is one piece of advice I give out all the time, it’s to remind my clients that your mortgage pre-approval is conditional. It’s based on a snapshot of your current financial situation – so my job is to help you make that snapshot look as good as possible!

A few things can get in the way of having a stellar snapshot. There are five common mistakes people make when searching for a new home. And in today’s blog, I will talk about these mistakes and why you should avoid them. 

Let’s get started! 

Mistake # 1: Changing Your Job or Income

What is the most important key to your mortgage approval? In a word, it’s your income. It is the one thing that lenders will focus on the most when deciding how much to lend or if they will lend to you at all. 

So you want to keep everything in your job or income very stable. Don’t change jobs or positions. Even going as far as keeping the same regular hours at work will make you more attractive to lenders. 

Mistake #2: Not Paying Your Bills on Time

When you apply for a mortgage, lenders will monitor your payment habits. They are looking for someone who regularly makes payments, so make sure you do not miss a payment! 

Missing a payment may immediately affect your credit score, so make sure you stay organized with bill payments. Setting up auto-payments and monitoring them closely is a great option for those with busy lives (and who of us isn’t busy these days?) 

Mistake #3: Taking on More Debt

When thinking about buying a house, it may not feel like a stretch to start buying other large new purchases: new appliances, decor, car loans, etc. I caution my clients against making other large purchases while in the mortgage approval process.

And more debt, including loans, leases and credit card purchases, will decrease how large of a mortgage you can qualify for, or it may reduce your chances of qualifying. So hang in there, and wait until you are approved before you get out the credit card! 

Mistake #4: Applying for New Credit

Lenders always want to see your best credit score, and even just applying for new credit may cause your credit score to decrease suddenly. Again, stay focused on getting your mortgage approved. You can always talk to us if you are considering any new credit applications, and we can work out a plan that puts your best foot forward. 

Mistake #5: Not Protecting Your Down Payment Funds. 

You will need proof of your down payment when the time comes to finalize your mortgage. You will often be required to show documentation of a 90-day history of your down payment funds. So keep all your down payment funds in the same place – even moving the funds around to different accounts can set off a red flag for some lenders. 

I hope today’s blog has been helpful. Don’t forget to contact me if you have any questions or if you are ready to start your mortgage approval journey. I’m here to help! 

P.S. Don’t forget to Join My VIP Club!

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Warmest Regards,

Christina Pentlichuk