Friday, September 9, 2016

How To Ruin Your Mortgage Approval

Are you applying for a mortgage at the Lake of the Ozarks? There are a lot of factors involved in whether or not you get approved for a home loan. In today's blog, your Lake of the Ozarks mortgage lender offers some advice on what not to do! Here are a few ways that you could ruin your chances at an approved mortgage.

1. Incurring More Debt. 


One of the worst things you can do while going through the mortgage process is incur more debt. Avoid making any large purchases. This includes buying a new car or even just purchasing furniture for your new home. You need to wait until after the closing to make any purchases because your lender will not only pull your credit at the beginning of the process, but also just before closing to make sure nothing has changed. Your debt to income ratio is a big factor in determining both the amount of the loan and whether or not you get approved altogether. Generally, lenders require that your housing, plus any other debt, does not exceed 43% of your income.

2. Making a Career Change. 


When you get a mortgage, the lender trusts you are able to pay back this loan over a certain period of time. One factor mortgage companies consider is the length of the present employment; they are partial to stability. Your current income and debts are used to determine how much of a monthly payment you should reasonably be able to afford. A career change in the middle of the approval process is almost certain to alter your debt to income ratio and could impact loan approval.

3. Being Involved in a Court Case. 


Whether you're dealing with a divorce or a lawsuit, being involved in a court case will not help your chance of loan approval. When it comes to divorce, lenders want to avoid being caught in the middle of the battle over marital property. In these situations, it's hard to tell whether or not the loan will be paid back and by whom. Being sued or suing someone can also interfere with your mortgage approval. If you lose the case, you will either have to pay a settlement or attorney fees. This extra expense could make it harder to make your mortgage payment. Lenders see these situations as quite risky. Be sure to let your lender know up front if you are involved in any of these types of situations.

If you're thinking about purchasing a home at the Lake of the Ozarks, call 573-746-7211. When it comes to your financing needs, I'm committed to working with you every step of the way. I'll discuss your options, offer competitive rates and offer advice on how not to ruin your mortgage approval. Let me help you open the doors to your dream home!

For Lake area news, resources and tips on financial services, please 


Michael Lasson
Sr. Loan Officer
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

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