10 things not to say about getting your mortgage approved

Be careful what you say to a mortgage lender, as what you say can end up with your loan application being refused.

A mortgage application process involves a thorough review of your financial history. There will be a lot of questions and mountains of paperwork to fill out. At the end, you might have more questions than there were on the document. It’s important to be honest with your lender, but don’t say anything that might make the deal go wrong. Your goal is to get approval and get the best rate available.

Here is a list of 10 things you shouldn’t tell your lender

1) Anything Lie

Lying to a mortgage lender can ruin your chances of getting approved. On top of that, providing misleading information about a loan application is a crime. Welcome to mortgage fraud! You can try to hide some information, but lenders are required to perform checks on major financial documents. If you have any problems, let your lender know and they will help you overcome these obstacles.

2) What can I do the most to borrow?

“So how much can I borrow?” Please don’t ask this question. This shows most lenders that you haven’t done your homework and seem misinformed. The hope is that you are someone who understands the impact of this important loan, but with questions like these you might not.

3) I forgot to pay this bill again

Insert cringe here. Like most things in life, consistency is the key. If you mention that you miss a few bills here and there, it can cause some concern. Even if you don’t say anything, these bills will show up on your credit report. This is a quick way to get your loan denied.

4) Discover my New credit card!

We understand, you want to buy things for your new home. The bad part is you are adding extra debt to do it. Telling your lender that you’ve opened or applied for several new credit cards may not go so well. Wait until you finish buying the house to make those big purchases. You don’t want to appear reckless with your spending until you get approved.

5) which one credit the card is NOT maxed?

Your lender doesn’t want to see significant increases in the majority of your credit balances. Take your DTI (debt-to-income ratio) into account. Small fees are okay, but it’s not uncommon for a lender to complete a final credit report days or hours before closing. This second look can change the terms of your loan or deny your request.

6) Change works every year is my specialty

You cannot control some of these aspects, but if you can, it is better to post a stable job. At least two years is a common requirement for mortgage loan approval. Lenders rely on you to set aside a portion of your income for loan repayments. Showing frequent job changes might not get your loan approved because your lender may have concerns about your ability to repay the loan.

7) This salary the job is not for me, I go to the commission

Congratulations on taking the bet on your own, but a lender may not. Current employment status is crucial for the loan approval process. It takes time, so your lender might not panic if you get promoted. If you tell them that you are considering quitting your paid job, the case could be called off.

8) I receive a cash gift from my parents for down payment

It’s awesome! Keep in mind that many lenders allow the use of cash grants for certain qualifying loan programs. Specific rules exist, so before mom and dad write you a check, talk to your lender. Your loan application may be rejected due to a simple rule that has been overlooked.

9) So foreclosure, how it works?

It is a major red flag. Asking your lender what is going on during the foreclosure process can be a clear indicator that he should think twice. While this may seem like a harmless curiosity, it can be a sign to the lender that you may be having trouble paying the monthly loan amount. At the start of the process, keep this question to yourself.

10) What is a credit Goal?

Add this to your financial routine: watch your credit score. If you don’t know what a credit score is, it is likely that you are not ready for a loan. It is important to know your score and how it came to be. This will help you make changes before you apply, increasing your chances of approval and a great rate.

The information on The Mortgage Reports website is provided for informational purposes only and does not constitute an advertisement for any products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, its parent company or its affiliates.

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