Watch Out For Red Flags!

"Rates are at an all time low!"
"Now is the time to get a mortgage!"

It is nearly impossible to count how many times you have heard the aforementioned statements and the like. Unfortunately, the more you hear these statements the more they sound like a sales pitch to get you locked into a long term committment. 

This is no sales pitch though; it's true! Rates are at a historic low. Now is the time to get a mortgage.

Before you apply for a mortgage, take note of these three items that according to a New York Times aricle may wave some red flags to lenders:

Large Deposit - By law, lenders must be able to confirm that funds in an account come from a real source. If you earn $7,000 a month but put down a $20,000 deposit the lender will question where the money came from.

New Address - Purchasing a home far away from your place of employment will draw some scruty to your loan application. Lenders want to make sure the property is owner-occupied as opposed to being purchased to rent out or flip. If you do decide to flip our rent a home this must be disclosed to your lender.

Signing Up For Credit Cards - Accumulating extra debt when applying for a loan is a big red flag to lenders. Extra debt can even endanger closing on a home!