So, you’ve hit the ground running with tackling your new year’s goal of buying a home, and you think you’ve found the one. You’ve found a lender you love and have applied for a mortgage. But before you cross that finish line of closing on your dream home, there are a few things you definitely do not want to do after you have applied for a mortgage.
You may be tempted to start shopping for major items for the home, but now is not the time to accumulate new debt. That new car will have to wait a little while longer. Large purchases can alter your debt-to-income ratio and derail what you may have already prequalified for.
Now is not the time to make any major career changes. Your loan officer needs to be able to track the source and amount of your annual income.
Leave any plans for new credit or old credit alone until after you close on your home. Applying for new credit can impact your credit score resulting in changes to your interest rate. Closing old credit accounts isn’t a good idea either. Your credit history is proof that you’re not a risk if your payment history is in good shape.
Don’t slack off on making your bill payments while you’re going through this process. Having a good payment history is vital when lenders evaluate your credit score.
Communication with your lender is key during the approval process. And, yes, they will ask a lot of you, so be prepared for questions and share any information they request of you. At the same time, make sure you’re asking your own questions. The process can be challenging to understand and work through, but a good lender won’t mind explaining things to you.
Once you make it to the point of applying for a mortgage, it’s important that you stay on your best behavior financially. Be patient, transparent, and communicate, and you’ll be on your way to move-in day in no time.
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