So, you’ve been pre-approved, you found the home of your dreams, and you’re just waiting for the final underwriting and closing. It’s all good, so what could possibly go wrong?
Many first-time buyers aren’t aware that their home loan application may be jeopardized if they do anything before the closing that affects their credit. Doing any of the actions listed below may lower your credit score, make you ineligible for the full loan amount, and disqualify you for final underwriting. If that happens, the bank may cancel your loan application and you won’t be able to purchase the home.
Until you are fully approved (not just pre-approved)…
1. Thou shalt not change jobs, become self-employed, or quit your present job.
2. Thou shalt not use a loan or credit card to buy a car, truck or van (or you may be living in it)!
3. Thou shalt not use credit cards excessively or let your accounts fall behind.
4. Thou shalt not spend the money you have set aside for closing costs.
5. Thou shalt not omit debts or liabilities from your loan application.
6. Thou shalt not charge furniture or any other big item until after the closing.
7. Thou shalt not originate any inquiries into your credit.
8. Thou shalt not make large deposits without first checking with your loan officer.
9. Thou shalt not change bank accounts.
10. Thou shalt not co-sign a loan for anyone.
Always check with your lender if you have any doubt that something you are about to do or buy will harm your loan approval.
Janet Contursi has been a Twin Cities Realtor® for more than 10 years. She is expert in all types of residential real estate, including short sales and foreclosures, and she especially enjoys working with first-time buyers and sellers. Contact her at (612-655-1207) or: realtorjanet [at] msn [dot] com
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