When you’re preparing to purchase a home or apply for a new mortgage or refi, there are some things you really should not do. We call them “The 10 Commandments of Lending”. Here are some of the most important ones:

• Thou shalt not buy a car, truck or van or thou might be living in it. Taking on a new, long-term loan can cause problems with debt ratios.
• Thou shalt not change jobs, become self employed or quit thy job. Quitting a job or becoming self-employed is a deal killer in a mortgage application; changing jobs may not kill your deal but it will delay the closing.
• Thou shalt not use credit cards excessively or let any credit accounts go delinquent. Credit card accounts that are 30 days past due can kill a mortgage loan, and running up credit card balances can cause problems with credit scores and debt ratios.

These are just a few, but please take some time and read through all of them.  These 10 commandments, although done with levity, are excellent guidelines to follow during a mortgage application. If we can help with any mortgage or refi questions, contact Indigo Mortgage.