WHAT NOT TO DO AFTER YOU APPLY FOR A MORTGAGE

While many home buyers are concerned with what they need to do in order to qualify for a mortgage, there are also a number of things that borrowers should not do once they have applied for a mortgage loan.

Please keep in mind that between the time you make your mortgage loan application and the physical closing, you should not do anything that will adversely affect your financial picture. There are things that you should not do without the okay of your mortgage lender; otherwise, your loan approval, earnest money, and the closing of your new home could be jeopardized. Some of these things include &

DO NOT make any large credit purchases (vehicle, furniture, appliances, etc.). Even buy now, no payments for 12 months deals will still affect your credit and debt ratio negatively. This also includes leasing a new/used vehicle.

DO NOT apply/open any new accounts or credit cards, take on new debt, or allow anyone to pull your credit.
 

DO NOT change financial institutions or move money around. To eliminate potential fraud, most lenders require a thorough paper trail to document the source of all funds and liquid assets.

DO NOT make ANY deposits or withdrawals of money in your bank accounts without documentation and a paper trail (especially large sum deposits/withdrawals).

DO NOT co-sign on a loan for anyone else.

DO NOT file for bankruptcy.

DO NOT enter into consumer credit counseling.

DO NOT change jobs. What if its a better job, for more money, but in a different field? Try and wait until after the closing. Lenders want to see a consistent, stable job history.

DO NOT continue shopping around with other mortgage companies. When comparing rates, payments, closing costs, etc., once youve decided on a mortgage professional, stick with them (unless you are completely unsatisfied with their service for some reason). Any credit reports pulled when shopping for a mortgage will not hurt your credit score as long as they are done within a 14 day period.

DO pay any regular and recurring debts on time, especially current mortgage payments.

Remember that once you apply for a mortgage, you are involved in an ongoing process, and anything that happens between your first application and the day of closing can be considered by a lender.
 

Always consult with your mortgage professional when there is a question regarding any of this information, because it can cost you your home loan.


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