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.