4 things that make it harder to get a mortgage

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Getting approved for an affordable mortgage is essential to making your dreams of home ownership a reality. After all, most people can’t pay cash for a house; houses are just too expensive.

You will need to find a lender who is willing to give you a loan at a reasonable mortgage rate, so you will want to avoid certain financial movements that could compromise your eligibility to borrow. In particular, here are four things you might not want to do if you’re going to apply for a mortgage soon.

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1. Change job

Mortgage lenders like to see that you received a regular salary from the same employer. This helps them be more confident that you will keep your job for the long term and that you will be able to continue making monthly mortgage payments after they give you a loan.

If you change jobs shortly before applying for a mortgage, it could affect your ability to borrow. Typically, you need two years of work experience in the same company at your current salary in order to get full credit for your income when lenders decide how much they are willing to lend you for the purchase. of your house.

2. Forgetting to pay an invoice

If you make late payments on your credit cards or other debt, your lender will usually report the default to major credit reporting agencies. Late payment can lower your credit score and make mortgage lenders very nervous about your ability to be responsible for paying off your mortgage.

You certainly don’t want to pay late before purchasing your home. If you inadvertently make a mistake and miss a payment, contact your creditor immediately and see if they would be willing to remove the negative record from your credit history. If you’ve been a good customer, your creditor may be willing to do this for you.

3. Open a new credit card

Opening new credit could also affect your ability to get a loan. Your lender will find out about the new card because you will get a serious credit check on your credit report and because the new account will show up on your credit report.

The inquiry and the new account could hurt your credit score and make your mortgage lender nervous because you are taking on too many financial obligations at once. Wait until you take on new debt if you plan to get a mortgage in the next year. This will help you avoid red flags that limit your borrowing options.

4. Load too much on your existing cards

Spending too much on your current credit cards can both lower your credit score and make mortgage lenders nervous because you won’t be able to cover all of the payments owed. Your credit score and the amount of your debt to income (called the debt-to-income ratio) are key determining factors in mortgage approval, and both will be affected by charging a lot.

You can avoid this by simply keeping your credit card balance low. If you do this and avoid taking on new loans, make your payments on time, and provide proof of stable income, you should be on your way to getting approved for a home loan at a competitive rate.


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