What is the best mortgage advice that you can tell your clients?

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4. New credit cards 

If you open or apply for several new credit cards, you may come off as reckless with your spending before getting approval. While you may want to make other significant purchases along with buying your home, it is best to wait until after you finish the home-buying process.  

5. Maxed out credit cards 

Most lenders do not want to see significant increases in your credit balances. For this reason, it is important to be aware of your debt-to-income ratio, or DTI. While small charges are usually okay, lenders can run a final credit report days or even hours before closing. Not only can that last look change your loan terms, but it can also even result in being denied.  

6. That you change jobs regularly 

If you can help it, it is best to show that you have stable employment. A common requirement for mortgage lending approval is an employment history of at least two years, because a lender will rely on you to save a portion of your income for mortgage payments. Changing jobs frequently may cause your lender concerns about your ability to meet your monthly mortgage payments.  

7. Exchanging a salary job for commission-based income 

Whether you are seeking a self-employed mortgage, a documented employment history—without any significant employment gaps—will help you qualify for a home loan. However, leaving your more stable salary job for a commission-based job could make you more of a gamble in the eyes of most lenders.  

8. Cash gift for down payment 

Most lenders allow cash gifts for certain loan programs (if you qualify). Keep in mind, however, that specific rules exist, meaning it is critical that you talk to your lender about the right way to move forward. You do not want your loan application to get reject simply because you overlooked a rule. 

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