While it’s exciting to start thinking about moving in and decorating after you’ve applied for your mortgage, there are some key things to keep in mind before you close. Here’s a list of things you may not realize you need to avoid after applying for your home loan.
1. Don’t Make Large Purchases - Before applying for a mortgage, you should avoid making any big-ticket purchases such as furniture, cars, or vacations. This is because lenders look closely at your debt-to-income ratio and a large purchase could push you over their pre-set limits.
2. Don’t Change Jobs - Lenders like to see stability when it comes to your employment history. Major job changes can make them question your ability to make loan payments on time. If you must change jobs, wait until after the loan is approved.
3. Don’t Close Credit Accounts - Don’t close your credit accounts before you apply for a mortgage. It could hurt your credit score, which lenders look at closely when deciding whether to approve your loan.
4. Don’t Open New Credit Accounts - Don’t open any new credit accounts before or during the loan application process. New accounts could increase your debt-to-income ratio and reduce your chances of a successful application.
5. Don’t Miss Payments - Making late payments on existing loans or credit cards could hurt your credit score and your chances of getting approved for a mortgage. Be sure to make
You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.