Most potential buyers are ecstatic at the news that they have got mortgage approval. However it’s essential to bear in mind that the purchase of your home isn’t 100% secure just yet. Follow the steps below to ensure that you avoid making seemingly innocent mistakes that could cost you your dream home.
1. Should I leave my Job when I’m applying for a mortgage?
Even if you are changing your job to get a better salary, you will be delaying the closing process. The length of time with your current employer and your job stability are two areas lenders will look closely at when you apply for a mortgage.
2. Establishing New Lines Of Credit
Lenders are mainly looking at your debt to income ratio. If something increases your debt or similarly decreases your income, this can be an issue. Applying for another credit card gives the impression that you’re looking for additional financial support. This may affect your ability to make mortgage payments and should be avoided.
3. I am just about to close on my mortgage, but have paid a bill late.
Paying your bills late can occur the odd time, but is something that should be avoided during the closing process. Late payment of bills can affect your credit report and may result in you not qualifying for a mortgage.
4. Closing Bank Accounts
Closing your bank account is a big no no in the run up to getting your mortgage over the line, and is a red flag for lenders. Even if it isn’t the case they will assume that you are trying to move cash around or hide existing debt.
5. I Have Pre Approval On A Mortgage. Is It Fine For Me To Buy A New Car?
Now is definitely not the time to buy a new car, expensive pieces of furniture or an investment property. Pre approval of a mortgage is given on the basis of maintaining a current level of debt and steady income prior to the home loan. Adding extra loans, from for example a car, changes the agreement. Even having children can change the outcome of your pre-approval as they are a huge expense.
6. Avoiding A House Survey
Skipping on a property survey should be avoided. This inspection isn’t only for your benefit but the mortgage lender needs to see it as well. The survey report tells the lender what repairs will be needed.
7. Over Bidding On A House
The current highly competitive Dublin real estate market is forcing buyers to put in offers way above the asking price. It is vital to keep in mind how high you can bid without increasing your financial risk. Even though the importance of getting your dream home may be your priority now, you’ll be paying for it down the line if you overbid.
At Citywide Financial Solutions, our expert team of qualified advisors are always available to guide you through the best options on all of the above.
If you have a query about mortgages, we’d love to help
Get in touch by calling us on (01) 513 8710 or emailing on info@citywidefinancial.ie