7 Deadly Deal-Killers

Finding the right home for your family and getting an offer accepted is a tremendous victory.   However, the hard work isn’t over yet.  Often, buyers start to make changes to their financial picture with good intentions however; these changes can end up jeopardizing the loan in which they were approved for.  To ensure a seamless transaction, please consider these tips and, when in doubt, consult with your mortgage lender.

• Do not buy or lease a car.  Underwriters look very carefully at your debt-to-income ratios and a large payment such as a lease or car payment can dramatically increase those ratios.  It could negatively affect your ability to qualify for your loan.

• Do not move assets from one bank to another during or right before your loan processing.  This will show up as a large deposit or a new account which complicates the approval process.  Any large deposits or a new account will require that the source of those funds be documented.

• Discuss with your lender any potential job changes before you make a move.  A new job may require a probation period which must be completed before the income from that job can be used for qualifying purposes.

• Do not buy new furniture or major appliances.  Your lender will run a credit report right before closing and any new inquiries on it will need to be addressed.  Any new obligations will need to be explained and included in your qualifying ratios.

• Do not run a credit report on yourself.  This will show up on the lender’s credit report as an inquiry and will need to be explained.  It may also lower your credit score.

• Do not attempt to consolidate your bills before talking to your lender.  They can advise you if this needs to be done and strategize an approach.

• Do not pack or ship information that may be needed for your loan application! Important paperwork like your tax returns, W-2s, divorce decrees or DD214 should not be sent with your household goods.  Getting duplicates of these documents can take a long time and could hold up your approval and loan closing.