Brand Properties Group


5 Things You Should Never Do When Applying for a Mortgage

posted by: Jeff Brand in Blog

You’ve found the perfect Flower Mound home, your offer has been accepted, and now it’s time to breeze through the mortgage process – right?! Anyone who’s been through it knows it’s not a walk in the park, but don’t make it harder than it needs to be! Avoid the added stress – and risk to your loan – by avoiding these 5 things when applying for a loan:


Major Purchases

You know you can swing the new car payment, so why not get a new car while you’re getting a new Flower Mound home? It sounds good to some, but new purchases affect your financial situation, especially if you’re financing the new car. New financing affects your debt to income ratio, in turn, increasing the risk. Instead, talk to your loan officer before making a purchase and postpone the new car a month or two until after the closing.


Co-Signing a Loan

Co-signing on someone’s loan – even if you never intend to have any financial obligation to pay – by default means you do have financial obligation should something happen. The loan will impact your debt to income ratio, so proceed with caution.

Moving Money

When applying for a mortgage, mortgage companies want all your financial history – and they also want to be able to trace every dollar. When they can’t, that’s when things get sticky. Avoid depositing any cash into one of you accounts, opening new accounts, or moving money within your accounts without consulting a loan officer on the best way to do that.


Closing Accounts

It’s a common misconception that open credit accounts are bad and should be closed. In fact, It’s the opposite. Open accounts mean “available credit” to FICO, which is a good thing. Not to mention, FICO scores put a lot of emphasis on “length of account,” so by closing accounts, you are shortening the length of time on your account and hurting the overall credit score.


Job Change

A new job – particularly one that involves owning your own business or receiving the majority of your income from commissions – will be a detriment to your overall loan viability. Instead, wait to switch jobs, or if you must make a move, ask your loan officer about the best way to handle the job change.


Have more mortgage questions? Call the Flower Mound real estate experts, The Jeff Brand Team! We work closely with the area’s best loan officers to get you into your new home with as little work as possible.

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