5 Ways you could be sabotaging your ability to get a mortgage!

Things are always changing in the mortgage industry. Here are a few tips to help prepare you for a home loan. 

#1 Job Hopping – When you go to get a mortgage, underwriters generally want to see a 2 year history of employment. If your employment history shows that you tend to be unemployed regularly or if you only last a few months on a job, this can jeopardize your chances of getting a loan. Little breaks in employment are fine, but if there appears to be a trend this could cause some concern

#2 Getting paid cash – Cash USED to be king. When applying for a mortgage you have to be able to document steady income. If you are paid in cash, there is no real way to document your employment or income. For mortgage purposes do your best to have a paper trail

#3 Opening new lines of credit – every time you open a new line of credit your debt to income ratio can decrease. In addition to that in can decrease your credit score. When preparing to buy a home it is best to keep your new debts and credit inquiries to a minimum. Some debt is good, too many debts or too much can sink your chances

#4 Cooking the books - Mortgage lenders will verify every bit of information on your application. And unfortunately, if you fudge numbers to qualify for a bigger mortgage, the bank will most likely uncover the deceit. Fudging can include exaggerating your income and assets, as well as lying about the source of your down payment or how long you’ve worked with a particular company. The mortgage lender also confirms all financial information you provide. If your stated income doesn't match up with your bank statements, W-2 or tax returns, you won't be approved for a mortgage.

#5 Changing your income – If you are paid a W-2 wage or salary your income is viewed as very consistent. If you are self-employed or paid any type of commission type wage your income is seen variable. If you fall in the variable category you may need to have a 1 to 2 years on the job in order to qualify for a mortgage. 

Searching for a mortgage can be tricky. Call me and we will find the best loan for you! 435-216-3081

Brandon Staples

Licensed Mortgage Consultant

The Staples Group at First Colony Mortgage

Office: 435.216.3081 Cell: 480.244.9002  Fax: 888.864.6618

Individual NMLS#: 1024578 | Company NMLS#: 3112

221 East St. George BLVD Saint George, UT 84770