The "Do Not" Do List
What NOT to do after submitting your Mortgage Application
There will now be some time between your loan approval and when you close. You should avoid the following until AFTER you have closed on your home loan.
- Do NOT take on any new debt - The temptation is strong. There are so many big purchases you want to make in connection with purchasing a new home or renovating of your existing home but don't. Additional debt may change your debt ratio, which could potentially disqualify you for your loan or it could raise your interest rate. Talk to your Loan Officer before incurring any new debt.
- Do NOT change jobs - If at all possible, do not make a career change during the time of your mortgage application and the closing of your loan. If you need to change jobs, talk to your Loan Officer first. At the least, new employment will need to be verified and could potentially delay your closing.
- Do NOT pack everything too soon - If you are moving, make sure you have access to your bank statements, W-2's, and tax records. Keep your pay checks in case the mortgage company needs to update any of your documents prior to closing.
- Do NOT lease or purchase a new car - This should go under the general heading "no new debt". It is highlighted separately because many people feel that leasing a vehicle will not change your debt ratio. A lease has the same effect as purchasing a new car, so talk to your Loan Officer first.
- Do NOT pay late on current bills - Even though you may have many expenses coming up for your new or current home, it is critical that you do not become late on any credit obligations during the loan process. This could disqualify you for your loan or could raise your interest rate.
- In short - Do nothing that negatively impacts your ability to qualify for your mortgage!
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