
DO's & DON'TS
Tips to Ensure Successful Mortgage Financing

DO
Use the credit you have as normal
This shows a healthy credit history of using and paying credit on time.
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DO NOT
Apply for new Credit or Initiate new inquiries
Credit Inquires can potentially damage your credit score. More importantly, opening new accounts will inevitably affect your debt to income ratio and should be avoided at all costs while you are qualifying for a mortgage.
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DO NOT
Deposit or Withdraw large Amounts of Money
Federal Law requires banks and lenders to source/trace all funds and identify their source. Moving large sums of money around can make it difficult to trace and create red flags as to whether we can use the funds or not. Moving money around can be normal for some. If this is you, make sure it can be sourced.
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DO NOT
Fall Behing on Your Credit Payments
This can negatively impact your credit and also signal to underwriters that you may have issues with your ability to repay
DO NOT
Max Out Your Credit Accounts
This will lower your credit score and affect your debt to income ratio.
DO
Call me if you questions regarding any type of financial decision
If you have any financial decisions that need to be made it is incredibly important that they are communicated to me to ensure that there are no negative effects with your mortgage qualifications.
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DO NOT
Change Jobs, Become Self Employed, or Retire
These are drastic changes that can affect qualifications and it is important to let me know before these decisions are made so we can determine the impact they would have on your loan.
DO NOT
Let your bank account show overdrafts
Accounts with insuffienient funds penalties signals to underwriting that you may have trouble with your ability to repay the new mortgage.
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DO NOT
Close or Consolidate Credit Accounts
This can hurt your debt to credit utilization ratio, lowering your credit score and/or affect your debt to income ratio.
DO NOT
Pay Off Collections or Charge-Offs
Paying these off during a mortgage transaction may impact your credit score in a negative way.