Minnesota Homes Today Local & National News

  • Home
  • About Us
  • Blog
  • Resources
    • Buyers Guide
    • Sellers Guide
    • Buyer Info
    • Seller Info
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
  • Contact

3 Common Home Financing Problems And How To Avoid Them

July 17, 2013 by Bob Elliot Leave a Comment

3 Common Home Financing Problems And How To Avoid ThemGetting the best mortgage financing for your new home can sometimes be a complicated process and, unfortunately, things can go wrong. Using a licensed and trusted mortgage loan specialist can help alleviate many of these challenges.

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 approved and they move forward on 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 finalized, as additional debt will change your “debt-to-income ratio” which could mean that you no longer qualify for the loan.

Many lenders pull your credit information right before funding, so avoid any big-ticket items until you have signed on the dotted line.

Switching Jobs During The Mortgage Loan Process

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 decline your loan.

Stay in your job through your home closing date 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, get 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 buy a St Paul home.

As always, call your trusted real estate professional today to discuss your personal situation and get the best advice on your upcoming home purchase!

BOB ELLIOT – 612 578 6162 or bob@elliotmn.com
RE/MAX Advisors
CRS AGENT
www.MinnesotaRealEstateToday.com

 

Filed Under: Home Financing Tips Tagged With: Financing Tips, Loan Approval, mortgage

Leave a Reply

Your email address will not be published. Required fields are marked *

Bob Elliot

Contact Bob Elliot

Broker Agent
CRS, GRI, CDPE

CALL 612.868.5500
Lic #: 40241196
eXp Realty
Bob Elliot
Free Buyers' Guide →
Free Sellers' Guide →

Connect with Me!

Let’s Keep In Touch!

  • This field is for validation purposes and should be left unchanged.

Realtor EQO

Quick Links

  • About Me
  • Accessibility Statement
  • Blog
  • Contact

Looking For Something?

Categories

Located in St. Paul, Minnesota

Copyright © 2023 · Powered by MySMARTblog