Are you thinking of purchasing a home someday soon? Here are a few things you absolutely should not do if you want to get approved for a home loan in the near future.
1. Don’t ignore your credit profile
This is the most important advice you might hear all week. Hide-and-go-seek does not apply to your credit score. Just because you don’t look at it, doesn’t mean it’s not there. Monitoring it often helps you to have a good understanding of how it is changes based on your decisions and enables you to check any incorrect information that you will need to amend before moving forward and buying a home.
2. Don't co-sign a loan for anyone
This will increase your debt-to-income ratio. It’s not easy to turn down a close friend. Explain to them how it will negatively impact your current loan application, and they should understand.
3. Don’t switch banks
You want every aspect of your financial history to show stability, including where you bank.
4. Don’t let your credit card get you in trouble
Don’t be late on any credit card payments, and make sure you are not spending excessively during this time period. Remember: you want to show the lender you are a responsible money manager.
5. Don’t change jobs
While your loan request is under review, do not change jobs, quit your job, or become self-employed. Think stability.