Things You Should Avoid After Applying For a Home Loan

By
Real Estate Agent with The Hoeke Team, REALTORS at Barr & Associates Real Estate, LLC

applying for a loan

 

Avoid The Things After Applying For A Home Loan

You’ve done everything right so far; you’ve found a great lender, received a preapproval, searched homes with real estate agents, and submitted your loan package for final approval. Now you’re done, right? Wrong. Until you close on your new loan, it’s more important than ever to keep your credit steady; most lenders perform one last credit check right before they fund and a decline in your score can mean the difference between gettinging the home and losing the loan. It's very difficult buying a house with bad credit.

Things You Should Never do After Applying for a Loan

Don’t Change JobsWhile sometimes it’s unavoidable, especially if a new job is the reason for the move, but any change in income or job status creates risk and should be avoided if possible.

Don’t Make any Large PurchasesAs tempting as it may be to go shopping for new furniture, wait until after you close to make any large purchases. This applies to furniture, appliances and even new cars. New loans could change your debt to income ratio and cause you to no longer qualify for the loan.

Don’t Apply for New CreditEvery time someone runs your credit report, your score is affected. This is not the time to search for a new credit card.

Don’t Close Any Credit AccountsIt might seem counterintuitive, but closing or paying off loans or credit cards might actually bring your FICO score down.The length of time you’ve had your credit open is a positive effect on credit scores.

Remember These Things When Applying for a Loan

The bottom line is to avoid doing anything to your credit that is the best credit solution.  If you’re unsure of what you can or cannot do, ask you lender; they can guide you in the right direction and make sure you close on your new loan.

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Topic:
Home Buying
Tags:
real estate agents
applying for a home loan
credit solutions

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The Hoeke Team, REALTORS at Barr & Associates Real Estate, LLC

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