These are loan-stopping HUGE mistakes that people make every day…so I am here to help spread the word so that you don’t do the same!
So picture this…
You found your dream home, you pre-qualified at a payment you can afford and now are just waiting to close. Time to take it easy – maybe start shopping for some new furniture or appliances or even take a closer look at that job that is now closer to your new home.
Making financial decisions before your loan has closed could jeopardize it?
Why, you might ask? Well we approved you based on your CURRENT situation, and if you go all changing that, it could cause big problems!
I will share with you the TOP 5 things that people do to mess things up for themselves!
DO NOT OPEN NEW CREDIT
Repeat after me…I WILL NOT OPEN ANY NEW CREDIT OR CHARGE UP MY CREDIT CARDS. I WILL NOT PURCHASE NEW FURNITURE OR APPLIANCES. I WILL NOT PURCHASE OR CO-SIGN FOR A VEHICLE, HOUSE OR ANYTHING until my loan is closed and funded.
New credit affects your debt to income ratio. It could put a halt to your loan approval and redefine your loan terms. Every lender has to do a check of your credit right before closing…and if there are new things on there it will not only delay your loan closing, it might stop it completely.
So don’t do that!
DO NOT MOVE MONEY AROUND
Do not move money around or deposit cash or get a gift without first consulting your loan officer.
We have to verify where your funds for closing come from, so when you have all sorts of crazy deposits and transfers, it will make your life very difficult. Also, if you have huge deposits from “unauthorized” sources, we might not even be able to give you credit for it.
DON’T CLOSE CREDIT CARD ACCOUNTS
On this one, what a lot of people do is they think they are getting “their finances in order” and go and close their credit accounts that they don’t use. Doing this can actually tank your credit score and cause you to get a higher interest rate!
So don’t do that either!
DON’T PLAN A VACATION DURING THE LOAN PROCESS
Alright…so you know you are buying a home. You are under contract and you have a closing date. For the love of God, stay in town! Your loan officer needs you to be available for questions, documentation etc. So stay in TOWN! You can go on vacation AFTER you buy your house!
DON’T CHANGE JOBS
Do NOT switch your employment during the home loan process. Your mortgage is based on your CURRENT situation, meaning both your current income and years on job. While moving to a higher paying job is awesome, just wait until after your loan closes. The employer will understand.
We have to call and do a verbal verification of employment right before closing…and if you quit your job, you don’t get to close on your home loan!
So don’t do THAT either!
I hope that I have taught you a little something! Thank you so much for watching! If you are still shopping for a home loan, would like to apply online, need more information or, would like to reach me, you can go to my website at SALending.com.
Thank you and God Bless~