5 Things You Should Never Do, After Applying For A Mortgage

CHANGE JOBS

Now that you have put in an offer and it has been accepted, you will still need to qualify for your mortgage on closing day. If you change your job, this may mean an adjustment in your income can have an impact on the level of risk the lender believes you can carry. This can impact your chances when closing your deal.

PURCHASE BIG-TICKET ITEMS

We all think of what we would love to purchase for our new home, your mind starts to dream; we need new appliances, a riding lawn mower, and hey what if we bought all the kitchen counters that we always wanted. STOP! It is great to dream and start making a list of all the things you want and need, but it is NOT recommended to make big purchases before your closing date. I have seen too often, people thinking because they have been approved for their mortgage, they are free and clear to use their line of credit, credit cards, savings, to go out and buy everything they want/need. Make your list and once you have closed your home, then prioritize what you absolutely need to purchase first and what can wait until a later date.

RUN UP YOUR CREDIT CARDS

Make sure you’re as close to debt-free on your credit cards as possible.

It isn’t a big issue to have some credit card debt. By keeping large purchases out of the picture and sticking to your budget, you’ll be doing yourself a big favor in securing a decent interest rate when applying for a mortgage.

CO-SIGN OR TAKE OUT OTHER LOANS

Do not take out or co-sign on any other loans after applying for a mortgage. Keep in mind that co-signing a loan still makes you a liable party if that original person fails to pay on time.

Lenders want to see consistency in your credit history and tacking on an additional possible point of risk with another loan could affect your mortgage approval.

APPLY FOR NEW CREDIT OR CLOSE EXISTING ACCOUNTS

My best advice to you is don't change any of your accounts or apply for new credit.

It is an exciting time, you have purchased your dream home and you want to make it exactly what you always dreamed of. Hang tight until after you have closed before making any changes to your credit.