Common Home Mortgage Problems And How To Prevent Them

Posted by Thomas Crimmins on Wednesday, July 31st, 2013 at 9:17am.

Getting a mortgage for your Staten Island home can be a complicated process and sometimes things can go wrong. There are certain mistakes that many homebuyers make when applying for their mortgages that can seriously damage their chances of being approved.

If you are aware of the most common mortgage issues, you will be better able to prevent them when applying for your own mortgage. Make sure that you keep the following tips in mind when applying for a mortgage:

Making Large Purchases Before Closing On The Mortgage

Many homebuyers think that they are in the clear once the mortgage deal is lined up and they go ahead and make another large purchase such as a car or home furnishings. However, it is best to hold off on all major purchases until the mortgage is finalised, as this will change your “debt-to-income ratio” which might mean that you no longer qualify for the loan. The bank might pull your credit information again before finalising, so avoid any big-ticket items until you have signed on the dotted line.

Switching Jobs

When deciding whether or not to approve your loan, the lender will look at your salary and your job stability. If you make a career move during the process of applying for the loan, this could make your income seem unstable and could cause the bank to pull the loan. Stay in your job for a little longer to reassure the bank that you have a stable income; you can always switch careers later.

Having No Credit Card

You might think that the fact that you have gotten by without a credit card for this long would be a positive thing in the mind of lenders. However, having no credit history at all makes lenders nervous, as they don’t know how you will handle credit when you have it. Instead, having a credit card that you repay in full every month, which will help to show them you can manage your credit responsibly.

These are just a few examples of major mistakes that home buyers make when applying for a mortgage. If you can avoid these issues, you will find it much easier to have your mortgage application accepted so that you can buy a Staten Island home.

For more information about buying a home, please feel free to contact me at 718.370.3200 or tom@tomcrimminsrealty.com. 

Tom Crimmins is the broker/owner of Tom Crimmins Realty. This St. John’s University graduate and native Staten Islander’s past careers include Assistant Dean of Students at SJU, NYPD Sergeant, Director of the Carnesseca-Sarachek Basketball Camp, and investor, speculator, and buy-fix-flip real estate expert. His real estate experience, which spans 30 years, is second-to-none.

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