The last thing any buyer wants is to have their financing fall through before they closed on a new house. It’s tough enough these days to qualify for a mortgage so you don’t want to do anything that could damage your mortgage or upset your interest rates between the time you apply in the time you close. This could be a few weeks or even a month or more depending on the house that you buy and the closing date. It’s important not to ruin your approval during this time. Here are some key things to remember to keeping yourself approved.
#1. Avoid big purchases.
Now is not the time to buy a new car, spend a lot of money or apply for any other loans. Consider putting a freeze on all of your accounts until the deal closes. Of course, you can still be paying your bills and your daily necessities, but don’t take out any loans, change lease agreements, or apply for any other loans or credit cards during this time.
Related: Financial Benefits of Homeownership
#2. Keep paying your bills.
You definitely want to keep up with your regular expenses such as paying your utilities, phone bills, and any other normal bills that you would be paying on a monthly basis. Keep them current, pay on time, and keep things as consistent as possible.
#3. Don’t ruffle your job.
Now is not the time to get a new job, quit your job, or go into a new line of work. Of course sometimes things can’t be helped depending on promotions at work, as long as you don’t quit your job or have any major changes, you should be good to go.
“This can be a weird situation in that people may change jobs or positions but if you can, try not to do too much that will change your income during this time.” – Pro Tip from Orlando Buyer’s Agent
#4. Be an upstanding citizen.
Of course, this should go without saying but don’t break the law. Any criminal activity could get your mortgage denied, so just keep your nose clean.
#5. Don’t transfer money.
Don’t transfer any large sums of money between bank accounts. Try not to make random, undocumented deposits or withdrawals from your accounts as well unless it has to do with buying the house such as a down payment, home inspection, appraisal or earnest money.
The point is to keep the status quo as long as you can during the time of approval and closing. Any major changes could have the lenders going back to your application for a second look. Ready to get started? Contact me today for approval or questions on applying for a new home loan.