What “not to do” can be just as important as what you must do when it comes to applying for a mortgage. Think of your application as a snap shot in time. It is a picture of your current financial profile and how you were approved for the loan. Any changes to your profile made prior to your funding date may impact your approval.
This doesn’t mean you can’t use your credit card between now and the closing date but what it does mean is don’t make any drastic life changes during your approval period.
Here are some of the most common examples:
- DO NOT change jobs, become self-employed, or quit your job.
- DO NOT buy a car, truck, or van (or you may find yourself living in it!).
- DO NOT use charge cards excessively or let your accounts fall behind.
- DO NOT buy furniture with money set aside for closing.
- DO NOT omit debts or liabilities from your loan application.
- DO NOT stop paying your rent or current mortgage.
- DO NOT originate any inquiries on your credit.
- DO NOT make large deposits without first checking with your Mortgage Broker.
- DO NOT change bank accounts or transfer funds back and forth between accounts.
- DO NOT co-sign on a loan for anyone.
For more great mortgage tips or to discuss your mortgage needs, please call Erica Vincelli today!