What NOT To Do When You Are in The Processing of Getting a Mortgage to Buy A Home.

Submitted by Robert Geist on June 23, 2017 - 10:49am

When buying a home that requires the purchaser to obtain a mortgage loan there are many actions that the home buyer might not realize can jeopardize them getting approved for the mortgage loan. 

What home buyer needs to be aware of is that their financial picture should be almost identical at the beginning of the, when you first apply, to the end of the mortgage loan process.  Just prior to closing the mortgage lender will update the application file. The lender will reverify your employment, income, assets and rerun your credit to make sure your FICO score has not meaningful changed and to make sure you have not taken on any new debt. 

What does this mean, what are examples of actions you want to avoid.

  1. Don't Apply for any new credit. Don't let anyone run your credit! No Store cards, auto loans, no new lines of credit.
  2. Don't add to any credit balances. Don't go out and buy furniture, appliances etc until AFTER the closing.
  3. Don't use your cash to purchase these items either.  If you are thinking of using your cash to purchase thing for the new home ASK YOUR LENDER FIRST if that would be ok.
  4. Don't change your employer.  Although a better job may or may not hurt you it will certainly delay the process.
  5. Don't add any unusual amounts of money to any of your saving or checking accounts without your lenders approval.
  6. Don't cancel any current credit accounts during the mortgage process unless instructed to do so by your lender.
  7. Your marital status should not change.
  8. Pay all bills on time or early. Don't skip a payment even if your creditor offers you to do so.
  9. Don't let your driver's license expire as you need a current form of ID at the closing time.
  10. Don't dispute anything on your credit report.
  11. If you are not sure ALWAYS ask your lender before going anything that effects your finance picture.

These are just some of the things NOT TO DO when you you in the process of getting financing to buy a home.  What you might believe won't hurt very well may.  Again Ask First!