There comes some responsibility and understanding of the mortgage process when buying a new home. Some think that just because you are approved for a mortgage in New Jersey, you can sit back and wait for the closing to happen now. There are many things a buyer must be careful of, even after they have been approved for a mortgage. This isn’t always explained by the loan officer, hence why I wanted to give a list of items.
What not to do after being approved for a mortgage, when you have received your commitment letter. DON’T …..
- DON’T change jobs or quit your job. If you change your job in the middle of the process, this could delay your closing.
- DON’T keep shopping for a new mortgage. This could effect your credit scores and either cost you more money or deny you for a loan.
- DON’T apply for new credit after you have applied for a mortgage. Wait until after you have moved in.
- DON’T pay off any collection accounts and or judgments unless told so by the lender. You need to be careful of such advice once in processing, because it could change your credit score for the worse. Understand your credit and what should be done.
- DON’T co-sign on any loan for anyone until you have closed on your loan.
- DON’T start with a credit counseling agency when starting the mortgage process. If your credit has to be pulled again and this is found out, some mortgage programs don’t allow it in a certain time period.
- DON’T spend your money or make any changes from your savings/checking accounts or 401-k plans. No large deposits or they will have to be explained. If taking money from your 401-k plan for the purchase of your house and depositing it into your checking account, make sure you save the paper trail for the lender, showing what you did.
- DON’T disconnect or change your home or cell phone number until you have closed on your loan. Lenders need to verify your home number, even if you use your cell number instead.
Summary : Some of the things mentioned above should not be done when even shopping for a mortgage or while even in the mortgage process. Most of all, none of the things mentioned above should be done once you have been officially approved for a mortgage in New Jersey with a commitment letter.