If you’re planning to purchase a home or apply for a new mortgage or refi soon, there are some things you really should not do. At Indigo Mortgage, we call them “The 10 Commandments of Lending”. Presented with some levity, these are things that may cause problems during a mortgage application:
• Thou shalt not buy a car, truck or van. If you do so right before or during a mortgage application, thou might be living in it. Taking on any 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 will kill the deal during a mortgage application; a change in your job may not kill the deal but it will very likely delay closing the mortgage loan.
• Thou shalt not let any credit accounts go delinquent or use credit cards excessively. While that’s always good advice, a credit card account that’s 30 days past due can kill a mortgage loan. Running up the balance owed on a credit card can cause problems with your credit score and debt ratio.

These are just a few of the “commandments”, please read the rest here. Our 10 commandments, although done with a bit of humor, are sound guidelines to follow during a mortgage application. If we can help with any mortgage or refi questions for your Colorado home, please contact us at Indigo Mortgage.