The process of buying a home comes down to three important factors: the location, cost, and time. If you have already found a home that you would like to purchase in the Austin area, then you already have one of the most difficult parts of the process behind you. The next step is to get your mortgage approved. This part of the process can take some time, but there are a few things that buyers can do to help speed up the procedure, such as having the required documents on hand when visiting their lender. This is common knowledge for most individuals, even if they are new to the home buying process. What many buyers may not be aware of is the fact that there are some bad habits that can cause your mortgage application to default.
No home buyer wants to hear that their mortgage application has been declined. Therefore it is important that buyers find out more information about certain behaviors or habits that may cause them to unknowingly unapproved their mortgage.
When Things Go Wrong with your Mortgage
In the typical market, a mortgage loan takes around 45 days to get approved. This is a very long time to wait if you are eager to move into your brand new home. In some cases, mortgage approvals can take even longer. It all depends on the market environment. Some loans may require additional forms to be filled out that can add days or weeks to your original wait time. During that extra time, whether it is two weeks or two months, you and your family could experience some unexpected life changes, and your loan could experience these unexpected changes as well, even if your loan was already cleared to close.
During the time when you are waiting for your mortgage loan to be approved, you could become ill, lose your job, or your home could become damaged by intense weather conditions. These situations could cause your lender to revoke your approval. These unfortunate situations are beyond your control and cannot be helped. However, there are some things that you can control that will affect the outcome of your approval.
Bad Habits to Avoid During the Mortgage Process
Keeping good credit and loan behavior during this time will help to ensure that your loan will be approved as soon as it possibly can. Ways to keep up good credit behavior is to avoid making any drastic changes that may affect your credit. Some things that home buyers need to avoid as they are waiting for their mortgage to be approved includes:
- Buying a new car or trading in for a bigger lease
- Quitting your job or starting a new company
- Switching from a salaried job to a heavily commissioned job
- Transferred large amounts of money between bank accounts
- Making late payments on your bills
- Applying for new credit cards
- Making random, undocumented deposits into your bank account
You will also want to avoid accepting cash gifts without filing the right type of paperwork.
Completing the Mortgage Loan Process
These are just a few of the things that you will need to avoid while you are waiting for your mortgage to get approved. If you would like to learn more about actions that can cause delays in your approval, you can ask our preferred lender about the process. By learning about these potential mistakes up front, you could cut your wait time in half and help to guarantee that your mortgage loan will be approved.