16 Things to Avoid While Waiting For A Mortgage Approval

With the new stricter guidelines especially here in Massachusetts, it is very important that the borrower follow some simply rules.

It is often that a homebuyer ruins his or her own mortgage approval by inadvertently changing his "risk profile".  It doesn't happen on purpose, of course -- it just happens.

Her is a list of things to avoid so you don't get call from your loan officer telling you things have changed

1. Don't buy a new car (or take on a larger lease payment)
2. Don't quit your job or change industries (and certainly don't switch to a heavily commissioned role)
3. Don't transfer large sums of money into or out from your bank accounts (and remember that "large" is relative)
4. Don't miss a payment to a creditor (even if you don't think you owe it)
5. Don't open a new credit card (even if you're getting 10% off your new bedding)
6. Don't accept a cash gift without talking to your loan officer first (because there's rules on how to accept them)
7. Don't transfer balances form account to another
8. Don't payoff charge offs without a discussion with your loan officer first
9. Don't payoff collections without a discussion with your loan officer first
10. Don't buy any furniture
11. Don't close any credit card accounts
12. Don't change bank accounts
13. Don't max out your credit card accounts
14. Don't finance any elective medical procedures
15. Don't pay off any loans or credit cards without discussing it with your loan officer
16. Don't go and buy that new IPhone.

If you encounter a need for any of the above, it is best to call your loan officer first so we can make sure it fits into your 1^st priority of buying or refinancing your home.  A good loan officer knows how sturcutre these situations to your advantage.