You've been pre-approved and have put your dream home under contract, but that does not mean that you can relax, while you wait to close. You need to remain on your guard and protect your approval. Here is a list of seven methods that could easily kill your loan.
Apply for a credit card.
You got your pre-approval based on your credit at the time. Applying for a new credit card, or worse yet, actually getting a new credit card has the potential to slit the wrists of your newly applied-for loan.
Buy a brand spankin' new car.
I know that you want to put a shiny new car in the garage of that new home... but buying that new car can kill-off the loan, so unless you're planning on living in that new car, you might want to wait until after the property closes. Even car shopping can cause problems, because car dealerships often "pull your credit" when you're in the dealership. And if that credit-pull shows up on your credit history... it could be enough to send your loan into a long-term-coma.
Purchase all new furniture for the new home.
It's tempting. You see that perfect new bedroom set that will go into the new guestroom, or that sleeper sofa for the den. Buying all that new furniture, especially on credit, can throw your credit ratios off, and put your loan on life-support.
Get that new flat-screen.
That 55-inch flat-screen with 5-speakers, surround sound and sub-woofer would fit over the fireplace in the family room exactly right. But before you go out and purchase it... think about the health of your loan. It could give your loan a terminal disease by changing your debt-income ratio. Are you beginning to sense a theme here?
Start up a new career.
You've been thinking about changing jobs. That accounting job that you've had for the last 8 years is starting to get boring. You're thinking that a career as an Emergency Medical Technician, like your mother wanted you to pursue, would be a great choice. While you're waiting for your clear-to-close is the perfect time to switch careers, if you'd like to see your loan flat-line.
Miss a few payments on your existing credit cards, or car payment.
You got your pre-approval because of your stellar credit history. The fact that you've made all of your payments on tme... even a few of them early. Now would be the perfect time, since you're already pre-approved... if you'd like to see your credit score drop by a hundred points or so. And that lower credit score could crash your loan into a brick wall.
Spend all of your extra cash.
All that extra cash that you've kept on hand. your loan officer tells you that you won't need to bring it to the closing. So, let's go on a nice vacation to the Caribbean just before the closing. No expenses spared. That's a really good way to mess up your creditworthiness, and could cause problems if some unexpected closing-costs should show up.
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