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What Not To Do After You Get Preapproved For A Mortgage
Dated: June 25 2019
Hey everyone this is Renee Heintz from Centry 21, just up here on Grandads bluff enjoying the beautiful day today.
So as most of you probably already know we are in a super hot market for sellers but unfortunately we are a little short on listings with lots of buyers out there desperate to find a place in this area.
So after you go through the process of getting preapproved for a loan, making Offers on maybe multiple different homes and then finally getting it accepted, at that point it’s super exciting and a huge relief And you might be think that finally you’re home free to a smooth closing but that’s not always the case. Buyers can still do things that can stop you from closing on your home. Here are a few things to remember to avoid that situation.
First one, Do not apply for new credit. Lender most lenders are required to do a second credit check before final loan approval in most cases. Your credit score could change because of the new credit which may mean that your interest rate could be adjusted or you may not be approved for the loan.
Second, Do not make any major purchases such as furniture, appliances or a new car. Doing this could affect your credit score, your debt to income ratio and even if you use cash you'll have less money to use for your down payment and for your closing costs.
Third, Do not pay off any of your debt or close your accounts, every move you make with your money will have an impact so you should consult your lender before you do anything.
Fourth one is do not cosign on any other loans. Even though you are signing on somebody else's loan, it is still considered a debt for both signers and will reduce your mortgage approval significantly.
Fifth, is do not change jobs. Even if it seems like a good move this could void your preapproval altogether. Consult your lender or delay the move until after you close on your home.
The next one is don't ignore your lenders request. Even if you're getting frustrated and annoyed with all the requests and maybe it seems like you've given your lender the same documents two or three times already, just stay calm, take a deep breath, and just give them what they request right away to avoid any delays.
Next is do not far behind on your bills. Be sure to pay all your bills on time and avoid any overdrafts on your account.
Finally, don't make any large deposits or transfers between your bank accounts. If you're planning on receiving gift from a close family member just be sure to consult with your loan officer before depositing any sort of cash money into your account. And also try to avoid too many transfers between different accounts.
So hopefully this will help you out and make your house a smooth process and get you to the closing table without any problems.
I am a full-time real estate agent at Century 21 Affiliated who services Rochester MN, La Crosse WI and surrounding areas. I have been in the real estate business since 2004 and I have been a license....