What exciting news after you found a home to buy and have applied for a mortgage! But, before you begin the mortgage process, it’s important to keep your finances as similar as possible until the closing day. While you’re waiting to close, a few helpful tips may help the process go as smooth as possible.
Don’t make any large purchases
You have found the perfect home after months of searching. You are getting excited and can’t wait to move in. You begin to picture how your living room would be like with your new furniture. You are already in buying mode, especially after finding out your credit score is good. What could go wrong when making any major purchases at this time?
Unfortunately, making purchases at this time could jeopardize the closing and funding of your new home. You don’t want to lose an opportunity on purchasing your new home. So, do not make any large purchases like furniture, a car, a boat, or jewelry.
Don’t change jobs
If you immediately switch one job to another with a different career field or take a lower or higher paying job, you may have a harder time getting your loan approved. This is because underwriters will request at least two years of work history. Changing jobs during your mortgage application process will raise a red flag.
If you’re aware that your job position or pay structure may change during the process, make sure you let your loan officer know.
Don’t apply for new credit
We are marketed with all kinds of credit opportunities, especially with great deals like “save an extra 20% on your purchase today.” The list goes on, but it doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels, your FICO score will be affected. Avoid applying for credit of any kinds whatsoever. Your pre-approval was based on the day your credit profile and score was applied. Remember, your goal is to keep your mortgage process running smoothly.
In general, don’t do anything that will make a significant impact on your finances without consulting a mortgage professional first. Please don’t hesitate to reach out to us, we’re happy to help you make the best decision.
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