Over the years we’ve helped hundreds if not thousands of home buyers in Boise and surrounding areas in Idaho get approved for a home mortgage. Unfortunately, during that time we’ve seen many well-intentioned people make poor decisions during the process that either disqualified them or made the process more difficult than it had to be.

Our team of experts here at Capital Mortgage have put together a list of some of these common mistakes to help you avoid them.

Make A Major Purchase
With a new home in near future, it’s natural to want to buy new furniture or make another major purchase  – these types of purchases can add to the excitement of new home ownership.   However, making any type of major purchase can put your home loan in jeopardy.   Even if you have a pre-approval, lenders will often do additional checks.  If a major purchase was financed, it can affect your debt to income ratio (DTI).  If a lender notices that your DTI has increased, it can cause delays and even disqualification.   What about paying cash for big ticket items?  Paying cash can also cause delays because lenders like to see that cash in your bank account as a buffer or reserve.   If that cash cushion that the lenders like to see falls below a certain amount, again it can put your loan at risk.

Make A Change In Employment
Losing your employment would obviously present a major hurdle, but even a change in employment or position.  Lenders want to see reliable income and any change in employment could cause concern regarding the future stability of that income stream.  If there unavoidable changes to your employment during the application process, keep your loan office informed, and he or she will be able to give advice specific to your circumstances.

Moving Large Amounts Of Money In Or Out Of Your Bank Account
Lenders look closely at recent bank statements and can make last minute checks of your accounts and bank records. Any significant deposits or withdrawals will raise red flags and will have to be explained.

Miss A Payment
Missing any type of payment can cause significant drops in your credit score. Lenders also like to see payment consistency, and if that streak of making payments on time is broken, it can cause concern to lenders

Apply For New Credit Or Have Your Credit Report Pulled
It’s hard to predict how credit request or new credit applications affect your credit scores but to be safe, avoid any unnecessary credit checks or applying for new credit.

These are just a few tips that we hope will help. If you are interested in getting approved for a home loan in Boise, please contact us today at:

208-854-7800

Or contact Us Online using the form to the right!