6 Things Not to Do When Applying for A Mortgage
A loan is not complete until you sign your closing papers. There are certain things you can do that could jeopardize your loan status and delay closing or cause you not to be able to close. To be safe, follow the advice below and always check with your lender. These are good for you to know ahead of time so that if you need to do any of these things you can do them well before deciding to buy a home or know that you will need to hold off until after you close on a new home.
1. Do not make major purchases like furniture, appliances, jewelry, vehicles, or vacations
2. Don't run up a home equity line of credit: A home equity line of credit works like a credit card, and many of the same rules apply
3. Don't change or quit your job
4. Consult with your mortgage professional before withdrawing, depositing or moving large amounts of money in or out of your bank account
5. Do not pay off debts or collections (unless instructed to do so by a mortgage professional
6. Don't have your credit report pulled too many times - this can hurt your credit score
We recommend that if you are considering buying a home in the next 6 months, that you talk with a Realtor early on and they can give you more advice on what to do and not do. That way you are better prepared. That will ensure a smooth buying process!
