Congratulations! You’ve been pre-approved for a home loan and you’re on your way to turning your dream of owning a home into a reality. But hold on, there is one very important “next step” and it is actually something you SHOULDN’T do.
Your mortgage pre-approval was granted to you based on the amount of money you have in your savings accounts, checking accounts, retirement accounts, and other assets, and the amount of debt you have (car payments, student loans, your current mortgage if you already own a home, etc). The lender will do a final review of your financial situation the day before closing by pulling your credit one more time. So, going on a shopping spree or changing your financial situation can jeopardize the home loan, which may result in you not getting the home.
From the time you are pre-approved for the home loan until the day AFTER closing on the home, you should avoid any changes that would affect your income, assets, debt, or financial situation. For instance:
- Pay your bills on time
- Don’t open or close any credit cards
- Wait until AFTER closing to make any large purchases
- Disclose all of your debts or liabilities
- Stay at your current job
- Avoid co-signing for others
- Don’t apply for any new loans
- Try not to change banks
- Keep a paper trail for all large deposits to your bank account
- Leave your savings alone
Unless your mortgage lender advises you to do otherwise, it’s best to maintain the status quo. Follow these simple tips and you’ll be closing on your new home in no time.
Have questions? Call 614-208-9794 or email firstname.lastname@example.org. I’ll help you buy sell love Columbus.