There are lots of sites telling you what to do in order to find the right home but knowing what not to do can be just as important. After finding the right home and dealing with all of the paperwork, many buyers, quite understandably, start making plans to move in and put their personal touches on the home.
In today’s tenuous lending environment, little things can derail the process which isn’t over until the papers are signed at the closing and your new deed is recorded. When you first applied for your loan, your lender verified your income, assets and job to determine if you qualify for the mortgage. Right before the closing, your lender will check these verifications again (sometimes 24 hours before the closing) to make sure there haven’t been any material changes to your credit or income that might disqualify you from getting your loan.
Here’s the list of Don’ts:
1. Don’t make any new major purchases that could affect your debt-to-income ratio
2. Don’t apply, co-sign or add any new credit
3. Don’t quit your job or change jobs
4. Don’t change banks
5. Don’t open new credit accounts
6. Don’t close or consolidate credit card accounts without advice from your lender
7. Don’t buy things for your new home until after you close
8. Don’t talk to the seller without your agent
It’s understandable to be excited about one of the biggest decisions you’ll make and that you feel you need to be getting ready for the move.
Planning is smart but don’t do anything that would affect your credit or income while you’re waiting to close on your new home.