Things to Avoid After Applying for a Mortgage
Brandon Grosse
Brandon is our managing real estate broker with experience since 2001 in professional sales...
Brandon is our managing real estate broker with experience since 2001 in professional sales...
Congratulations! You’ve found a home to buy and have applied for a mortgage! You’re undoubtedly excited about the opportunity to decorate your new home, but before you make any large purchases, move your money around, or make any big-time life changes, consult your loan officer – someone who will be able to tell you how your decisions will impact your home loan.
Below is a list of Things You Shouldn’t Do After Applying for a Mortgage. Some may seem obvious, but some may not.
Don’t Change Jobs or the Way You Are Paid at Your Job
Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well.
Don’t Deposit Cash into Your Bank Accounts
Lenders need to source your money, and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
Don’t Make Any Large Purchases Like a New Car or Furniture
New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher debt to income ratios… higher ratios make for riskier loans…and sometimes qualified borrowers no longer qualify.
Don’t Co-Sign Other Loans for Anyone
When you co-sign, you are obligated. As we mentioned, with that obligation comes higher ratios as well. Even if you swear you will not be the one making the payments, your lender will have to count the payments against you.
Don’t Change Bank Accounts
Remember, lenders need to source and track assets. That task is significantly easier when there is consistency among your accounts. Before you even transfer any money, talk to your loan officer.
Don’t Apply for New Credit
It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels, your FICO® score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.
Don’t Close Any Credit Accounts
It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels, your FICO® score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.
Bottom Line
Any blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature.
Need a referral for a fantastic mortgage lender? Good news, we work with best! Reach out to your Accord Realty agent today for a mortgage lender referral who can best guide you through the process.
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