3 Mistakes to Avoid When Applying for a Mortgage

Video Transcript

Looking to buy a house? Here are three mistakes that you should avoid when applying for a mortgage.

Mistake Number One: Quitting or Changing Jobs
Now, I know some things are out of your control, and if the right job opportunity presents itself, you got to take it. But a stable work history is the key to applying for a mortgage. Lenders want to make sure that you have a stable source of income so that they can count on you paying them back.

Mistake Number Two: Transferring Large Amounts of Money Between Bank Accounts
The one thing that you never want to do when applying for a loan is to look suspicious. And there's nothing more suspicious than large amounts of money just mysteriously appearing in your bank account. Any money that you're planning to set aside for your down payment should be in your bank account for at least a couple of months prior to closing.

Mistake Number Three: Applying for or Opening a New Credit Card During the Loan-Processing Phase
Don't apply for new credit of any kind. It doesn't matter if it's a store credit card or student loan. Your lender will definitely not like the idea of you taking on new debt before you borrow hundreds of thousands of dollars from them.