Although mortgage interest rates have recently pulled back some, they’re still historically low. When rates were lower yet, I decided to refinance the mortgage on our home.
With lenders spooked by COVID, requirements to approve mortgage applications went from stringent to absurd, especially if, like me, you’re self-employed.
Here are seven easier to avoid mistakes that take your mortgage from difficult-to-approve to (nearly) impossible and what to do instead, taking it to less-difficult-to-approve.
Stay in your current job at least until your mortgage is funded. If that’s not doable, try to at least move immediately into a better-paying job
This is a dead-simple one to avoid. Just keep your tax returns and W2s for at least the past couple of tax years.
To avoid this problem, don’t open a new credit card or another credit line, and don’t co-sign one of those while you’re in the process of applying for a mortgage.
Talk with your lender before you make such large deposits. They’ll tell you what documentation would solve the problem.