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Applying for a Home Loan in Louisville

Applying for a Mortgage Loan in Louisville

You’ve just been preapproved for a loan. You begin your search for your new home and find your dream home right away. Your REALTOR writes a contract and it is accepted by the seller. This is such an exciting time in your life! Purchasing a home is one of the most monumental events you will ever experience.  However, there are many things you should keep in mind when purchasing a home, especially when it comes to your home loan. In order to receive a mortgage loan and move into your new home, you will need to follow a few guidelines.  Read More...

Here a few things you should NOT do when applying for a mortgage:

1.)    Do Not Take Out a New Loan- Taking out a new loan will increase your debt-to-income ratio (DTI). Lenders don’t like to see this when you are in the process of receiving a mortgage loan.

2.)    Do Not Make Late Payments- It could really jeopardize your chances of getting a loan if you pay bills late while in the process of receiving a mortgage loan. According to Credit.com, a 30-day late payment can drop your credit score by 60 to 110 points. If the 30-day late payment is a mortgage payment, you may be at risk of being rejected by the lender. 

3.)    Do Not Switch Jobs- Lenders want to see that you can hold down a job and have a steady income. Sometimes if you switch jobs within the same field of work, and you are not taking a pay cut, you may still be able to get a loan. You will also want to avoid taking any jobs that are commission based during the time you are applying for a mortgage loan.

4.)    Do Not Purchase Big Ticket Items- This would include things such as cars or furniture. Big ticket item purchases will increase your debt-to-income ratio which makes you at higher risk for being ineligible for obtaining a loan. In addition, this could lower your credit score. In general, you do not want to put too much money on your credit card before purchasing a home. If you cannot avoid purchasing a big ticket item, consult with your loan officer before doing so. If you need a loan officer in Louisville, we would be happy to help you.

5.)    Do Not Open or Close Credit Cards- If you open a new line of credit it is creating an inquiry on your credit report. This could result in lowering your credit score.

6.) Do Not Co-Signing a Loan- This can be very risky, especially when you are applying for a mortgage loan. To be on the safe side, avoid co-signing a loan altogether when you are applying for a mortgage loan.

Make sure to always consult with your loan officer if you have any questions or concerns. If you don’t have a loan officer and want to purchase a home, contact the Hollinden Team at 502-429-3866. We would love to help you get in touch with a loan officer in Louisville. We have several loan officers in Louisville that we can have contact you. If you are interested in mortgage rates in Louisville or the Louisville mortgage market, we can help with that as well. We also have information about the mortgage preapproval process in Louisville on our website. If you are interested in finding a home for sale in Louisville or surrounding counties, we would also love to help you with that as well.


 Birk, C. (2014, January 27). The Worst Things You Can Do Before Buying a Home | Credit.com. Retrieved June 22, 2016, from http://blog.credit.com/2014/01/the-worst-things-you-can-do-before-buying-a-home-74570/ 

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