Whether you’re looking to move to Kansas City or you’re already here and searching for the perfect house, the mortgage process is the same.
It’s exciting to get approved and the process is long. In order to move the process along as quickly and easily as possible, you must be conscientious of all financial decisions that impact your bank account and your credit.
The first step of the home-buying process is a mortgage pre-approval. However, even before you get the approval, there are things you should be mindful of.
What to Avoid After Applying for a Mortgage in Kansas City
Once you’ve received your pre-approval, you can start searching for the right home. While you’re searching, be sure to avoid these five things.
1. Neglecting Your Current Debts
It’s important to continue paying all of your debts or monthly recurring bills as you normally would. You do not want to do anything that gives a lender reason to question your ability to make steady payments.
Before, during, and after the application process, you want to keep your debt payment history consistent.
2. Applying for New Credit
Once you’ve applied for a mortgage, you don’t want to open any additional debt. Your pre-approval was based on your current financial status.
Adding new credit or additional inquiries that could potentially drop your score, will only delay your closing.
3. Making Large Purchases
Avoid making large purchases after applying for a mortgage. Your financial portfolio included any cash reserves you had available. Reserves are important when purchasing a new home because it demonstrates an ability to handle home repairs or support unexpected events like illness or unemployment.
If you’ve spent a large portion of your reserves, or if you’ve taken out a line of credit, it can impact not only your credit score but also your debt to income ratio.
4. Untimely Responses to the Lender
Once you’ve applied for a mortgage, you want to respond to all inquiries and every request for documents as quickly as possible.
Credit score information is only good for a certain number of days for most mortgage lenders, so after you’ve applied for a mortgage, be on the lookout for communication from the lender.
5. Making a Career Change
After you’ve applied for a mortgage, avoid making any major career changes.
A lender wants to see that you have a steady and consistent income. They also want to know that you’re reliable and committed. Changing jobs in the middle of the process could delay closing.
Applying for a Mortgage in Kansas City
Applying for a mortgage is a big decision. As long as you take certain precautions and are mindful of your credit and finances, you will be able to secure the house of your dreams.
Contact A1 Mortgage today and we’ll help you make your dreams a reality.