What NOT to do after Applying for a Mortgage
If you're in the process of purchasing a home, it's natural to start thinking about moving in and personalizing the space. However, it's crucial to consider certain factors before closing the deal and getting caught up in anticipation. Here is a few things to keep in mind once you've applied for your mortgage.
Avoid depositing large amounts of cash as it can be difficult to trace. Before depositing cash, it is important to discuss with your loan officer the proper way to document your transactions.
Refrain from making any substantial purchases, as these can raise concerns for lenders. Any large purchases can impact your debt-to-income ratio, making it riskier for lenders to approve your mortgage. This applies not just to home-related purchases, but also to furniture or appliances.
Do not cosign loans for anyone, as this can increase your debt-to-income ratio and affect your loan eligibility. Even if you are not responsible for making payments, lenders will still consider the loan against you.
Avoid switching bank accounts, since this complicates the process of sourcing and tracking your assets. It is best to consult with your loan officer before transferring any money.
Do not apply for new credit, whether it is a credit card or a car loan. Multiple credit inquiries from different financial channels can impact your credit score, affecting your interest rate and approval chances.
Do not close any accounts, since this can negatively impact your credit score. The length and depth of your credit history, as well as your total usage of available credit, are important factors in your score.
Communicate any changes or anticipated changes to your lender. It is important to be transparent about any blips in income, assets, or credit, so that your home loan can still be approved. If there have been recent changes in your job or employment status, inform your lender. It is best to discuss any financial intentions with your loan officer before taking any action.
Ultimately, it is important to ensure a smooth home purchase by seeking guidance from your lender, who can provide expert insights into how your financial choices might affect your home loan. Here is our preferred lender if you need someone to answer any of your questions: https://www.buyrealestateinvegas.com/about/preferred-lenders/