Mistakes to Avoid If You Want a MortgageSummer is a busy season for movers. Many people taking advantage of the beautiful weather to visit open houses, sell their homes and buy new ones. If you’re thinking of moving into a new home and are planning to shop for a mortgage, make sure you don’t do the following major mistakes and sabotage your chances of homeownership.
Don’t quit your job. This isn’t that time to become your own boss either. Lenders willing to give you a mortgage are looking for stability. If they see that you have worked in a certain place for a number of years, they are more likely to give you a mortgage. The way they see it is that the more stable you are the less likely you are to default on a loan. Even switching jobs isn’t the best move, if you can hold on to the same employer until you close. And lenders aren’t just taking your word for it. You’ll have to prove your employment situation and income with pay stubs.
Don’t make major purchases, especially not the ones that require financing such as a car, a boat, a motorcycle and so on. Make sure to keep your credit car balances down and your overall debt-to-income ratio low. After you move in, you can have all the fun that you want, especially with furnishing the place.
Don’t open new credit cards, not even the retail kind that offers you 10% off your purchase when you shop in a specific department store.
Don’t be late on any kind of payment. Make sure to pay all of your bills on time including credit cards, utilities, rent, car payments and so on. You need to show that you can be trusted to made your payments on time and in full.
Don’t co-sign a loan, even if it is for family. Even if you don’t expect to make payments on that loan it increases your debt-to-income ratio. Essentially you’re saying that if that person doesn’t pay that loan, you’ll be responsible for it. When shopping around for a mortgage, you have to be carrying the least amount of debt possible.
Once you get that mortgage and are ready to move into your new home, don’t forget to call the West Palm Beach local movers for an efficient move. Our reputation is backed by four generations of All My Sons Moving movers. We’ll quilt pad wrap your furniture and make sure your personal belongings are safe. For an affordable and hassle-free move, trust the West Palm Beach moving specialists.