If you’re like most people buying a home for sale in Vero Beach, you’re going to get a mortgage – the vast majority of people don’t have cash to buy a house.
The last thing you want is for your mortgage to fall through at the last minute. That throws a wrench in everything… but these are three simple mistakes that can lead to your mortgage being denied. (And we’re telling you so that you can avoid them at all costs!)
3 Simple Mistakes That Can Lead to Your Mortgage Being Denied
The most common reasons people have last-minute mortgage problems include:
- Making big purchases for the new house
- Applying for credit
- Switching jobs
#1. Making big purchases for the new house
When you have cash in savings, your mortgage lender knows about it – and if there’s a sudden drop in your bank balance (even if it’s just a few thousand dollars), the lender will notice. When it’s time to sign the final paperwork, missing money sends big red flags to the bank. In many cases, this can delay your closing… or worse, it could cause your lender to say, “Well, you don’t have the amount of money in savings that you had when we initially approved you, so we’re going to withdraw our offer.”
#2. Applying for credit
When you apply for a mortgage, you’re applying for credit from the lender. But if the lender sees that you’re asking other people for credit, too, like an auto finance company or even a new credit card company, it’s going to get skittish about letting you borrow such a large sum. Applying for credit sends a signal that you’re having a tough time making ends meet, even if you’re not, so your lender might decline to let you borrow the money for your dream home.
#3. Switching jobs
All lenders like to see lots of stability when they extend an offer for credit, and that includes your job. If you’re switching jobs just before closing day, be aware that your lender might worry that your new job won’t last. Statistically, they’re right – the longer someone has held a certain job, the more likely they are to stay current on their financial obligations. Wait until you’ve closed on your new home before making the job switch!
Are You Buying a Home in Vero Beach?
If you’re thinking about buying a home in Vero Beach, we can help you find one that’s just perfect for your needs. Call us at 772-231-6509 and sign up for our hot property alerts – they’re completely free, and they’re the best way to stay on top of the newest listings to hit the market.
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