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Lenders like your down payment to be sitting in your account for at least 2 months-what they call “seasoning.” All cash deposits or large deposits not from your payroll are required to be documented and sourced.

Quitting your job, changing your job, or becoming self-employed can cause issues with your loan. Lenders want to see a pattern of stability, which means you’ll be less likely to default on a loan. Changing jobs from self-employed to salaried or salaried to salaried is OK. However, going from salaried to self-employed is problematic because you will not be able to provide documented taxable income to prove your earnings.

Like your employment, you want your banking history to show stability.

Buying a vehicle increases your debt-to-income ratio, and that’s something lenders don’t want to see.

Like financing a car, charging big-ticket items increases your debt-to-income ratio and can adversely affect your mortgage.

You need a track record of responsibility that shows you consistently handle your money well. Late payments can also adversely affect your credit score.

Don’t leave out any debts, liabilities, or fudge your income. It’s fraud.

Even if you’re not the one making the payments on the loan, it increases your debt-to-income ratio.

Looking for new credit translates into higher risk for lenders. Opening additional credit accounts within a short period can cause your credit to take a hit. While probably not a huge factor in calculating your ability to repay a loan, it’s not worth the risk.

Part of the price of financing a loan is the closing costs, and you’ll likely have some responsibility for paying them. Make sure you have enough for your share of the obligation.

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