Don’t Apply for New Credit/ Make Big Purchases
We know you’re excited about getting into your new home. But don’t jump the gun by going out to buy all new furniture or appliances. Applying for new credit, co-signing for credit, or opening up new credit cards could potentially adversely affect your rate or get your loan denied. Making this type of change could dramatically impact your debt to income ratio if you apply and/or use new credit. Your Loan Originator will be notified of any new credit or applications, which will have to be explained and documented and may delay the process of your loan application.
Don’t Close Out Credit
Closing credit or banking accounts will negatively impact credit scores and should be avoided during the mortgage application process.
Don’t Move Your Money Around/ Make Large Deposits
Though you are not technically opening or closing accounts, moving large sums of money around within banking accounts or making cash deposits, large deposits or withdrawals can raise a red flag in the process. You must work with your Loan Originator to document any and all movement or large deposits.
Don’t Quit or Switch Your Job
This can seem like a simple “don’t” on the list, but in addition to credit, your savings, investments and income are also very important factors for a mortgage approval. Your lender will verify employment up until the day of the closing.
As always, your Licensed Loan Originator is there to help you have a successful and seamless close on your mortgage. Be sure to discuss your unique situation with your lender.