Not Before Closing!
It is exciting when you find your dream home, your offer is accepted and your closing date is set. Next comes furnishing the home and buying needed items or décor. But it is important not to jeopardize a successful closing by making one of these common errors:
- Never change jobs! Your income as stated to your lender must remain consistent and accurate for a final underwriting approval.
- Do not increase current debt. Now is not the time to use your credit card for numerous expenses.
- Don’t apply for new credit. Those retail credit cards to get store bargains is tempting, but any new credit will hurt your credit score.
- Never move money without a paper trail; the lender will want to know where the money went or came from and without proper documentation, it will have a negative impact on loan approval.
- Now is not the time to skip a payment or make a late payment on a bill. Some think they can skip the next mortgage payment since they have sold the house and are moving but that is never a good idea. Keep all bills up to date and your credit score solid.
- Do not dwindle your savings or buy any big-ticket items such as a new car, new Smart TV, new cellular phone . . . . anything that will add a large payment to your credit. This may hurt your debt-to-income ratio and cause the lender to deny your loan at the last minute.
Lenders will continue to check your credit, income and job stability up to just before closing to see if anything has changed that may impact your qualification. If any of the above is found, it may cost you the loss of your dream home! So, always work with a realtor, who can guide you through the lending process and keep you on the right track.