Your Holiday Mortgage Guide: Navigating Do’s and Don’ts

Don’t Make These Mistakes During the Holidays or You’ll Jeopardize Your Mortgage Loan!

Your holiday to-do list is long enough without adding buying a house on top of everything else. There is decorating, shopping, wrapping, and multiple gatherings to attend. To knock one small thing off your list that makes a BIG impact, it’s keeping your credit in shape while you’re moving through the mortgage loan process. To keep your credit sparkling like the Macy’s tree in Times Square, consider adding some of these do’s and don’ts to your to-do or not-to-do lists.

Don’t do these:

• Do not open any new credit accounts. Retailers will try to entice you to open a new credit account so you can save 10% or more. Don’t give in! This will cost you big while Underwriters are reviewing your loan application. If you think it won’t show up on your credit report immediately, think again. When you apply for any new credit account, it shows almost as soon as when you’re standing at the cash register checking out.
• Do not run up your credit card balances. You may have planned to use your credit cards to purchase presents, but if you run up your credit balances, it will affect your debt-to-income ratio. When your debt-to-income ratio reaches a certain point, underwriters may question your ability to afford the mortgage you are applying for.
• Do not put off paying bills. Be sure to pay all of your bills on time while you are applying for a mortgage. Even one missed payment can affect whether your mortgage is approved or not.
• Do not miss out on your annual free credit report. This is a no-brainer! The federal government has authorized free access to your credit report from the three nationwide bureaus every 12 months. Know what’s on your credit report to ensure that there are no surprises when it comes time to submit your loan application.

Do these:

• Budget your holiday gift purchases and stay within your means. Before you start purchasing gifts, take some time to evaluate your current financial situation. Taking this time is very important and can ease the after-holiday stress knowing that you stayed within your budget and will not be in any financial hardship after the holidays.
• Remember that lenders and other home service providers work reduced hours this time of year. The closer it is to the holidays, your loan may or may not slow down due to holiday events. Be sure to check with your loan officer.
• Have fun and be merry! This is a special time a year for everyone and it’s important to celebrate with family and friends amid the process of buying a new home.
• Reach out to your local lender if you have any questions regarding a new or current mortgage loan we can answer. We are here to make sure your mortgage experience is the best it can be, after all, our promise is for every customer to experience mortgage excellence.

Happy Holidays from BankSouth Mortgage!