5 things NOT to do before getting a home loan
It may sound like a given but we’ve seen it multiple times. Don’t make big life changes before buying a home. Now isn’t the time to buy a new car or switch jobs.
Don’t do these 5 things when purchasing a home:
Don’t make any big purchases
It can be tempting to start buying furniture or appliances before you close on your loan. Don’t. Big changes in savings or charging large purchases will increase your debt-to-income ratio and could effect your loan. As a general rule, wait until after you close on the loan to make big purchases.
Don’t max out credit cards, apply for a new card or close accounts
Your credit can be pulled at any time up to the closing of the loan. Any negative changes could alter the terms of the deal.
Don’t miss credit card or loan payments
Keep paying your bills on time. Payment history is one of the most important factors in your credit score. Late or missed payments can void your loan.
Don’t switch jobs
Proof of income is one of the most important aspects of a mortgage approval. Changing jobs – even for a boost in income – could change your loan amounts. Don’t change jobs during your loan process!
Don’t make big deposits into your account without proper documentation
Anything out of the ordinary, including large deposits or withdrawals, can raise a red flag. Even if you are gifted money for a down payment, make sure it is properly documented. Large deposits may indicate newly borrowed money, which will change your debt-to-income ratio.