You’ve found your dream home. You’ve been pre-approved, the seller has accepted your offer, the inspection went great and your closing date is set. However, remember the deal is not done yet and your lender can change their mind. Here are five things to avoid in order to keep your loan from being turned down.
1. Don’t mess with your income-to-debt ratio
Everything seems to be coming together and you couldn’t be more excited. Therefore, you want to start purchasing big ticket items to decorate the interior of your soon-to-be new home. Bad idea! The ratio of your monthly income to your monthly debts is a main factor the lender considered when qualifying you. And your lender will probably run your finances a few more times before closing. Therefore, don’t take out a loan, sign any car leases or make any big purchases. This could result in you losing the loan for your new home.
2. Don’t disappear
Keep in touch with your lender and be available to answer any last-minute concerns.
3. Keep your loan officer informed
Don’t make a large deposit or open a new bank account without checking with your loan officer first. A large deposit can lead to a lot of questions, such as where the money came from. Inform your Loan Officer of any financial changes, such as money transfers.
4. Don’t change jobs, become self-employed or quit your job
Most lenders prefer home buyers to have a two-year job history. Making a big career move can slow the home buying process down or even result in you losing the deal.
5. Don’t open a new credit card, use credit cards excessively or let your accounts fall behind
Engaging in behavior that could negatively impact your credit score could slow down the home buying process or result in you losing the loan.
If you would like to learn more about the home buying process, contact one of our experience agents here.