7 Easily Avoided Mistakes That Make Approving Your Mortgage Hard and What to Do Instead

7 Easily Avoided Mistakes That Make Approving Your Mortgage Hard and What to Do Instead

The two main difficulties we hit this time around were simple.

Why Make Things Difficult If With Negligible Effort You Can Make Them Impossible?

Don’t Change Jobs Or (Worse) Quit Your Job To Start A New Business Right Before Or During The Loan Application Process

Lenders want to see a great track record of income.

Do This Instead...

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Don’t Throw Out Your Recent Tax Returns And W2s

While a lender can (and will) ask the IRS for your tax transcripts, this is to verify the information in the copies of the tax returns you submit to the lender.

Do This Instead...

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Don’t Take On (Or Co-Sign On) New Debt

Lenders get antsy when your total debt payment is too big a fraction of your income...

Do This Instead...

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This one is counter-intuitive and may run contrary to the advice you hear from family or friends (who aren’t in the industry and don’t know how things work these days).

Don’t Just Pay All Debts In Full (At Least Not Ones You Wouldn’t Have Otherwise)

Do This Instead...

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Don’t Make Large Deposits Into Your Accounts (Unless You Can Document The Source)

This too is a little counter-intuitive.

Do This Instead...

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Don’t Make (Too Many) Transfers Between Accounts (Especially Accounts You Don’t Own)

... every significant sum moving into or out of your accounts has to be documented.

Do This Instead...

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Don’t Arrange To Get Money Back At Closing As A Result Of Seller Allowances

Note that this one is relevant for new purchase loans, not refis.

Do This Instead...

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Money Management

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