When buying a home, there is so much to know and remember, it is easy to forget some of the more important details. So, we’ll just have to remind you! Here are a few things to avoid doing after you have been preapproved for a loan.
1. Apply for new credit
A preapproval is simply a snapshot of your current situation. Anything that changes between the point of your preapproval and your settlement date will influence where you stand. Applying for a new credit card will likely change your credit score which will have an effect on your interest rate. If you are serious about buying a house, you should hold off on applying for new credit until the loan closes.
2. Change jobs
Without an explanation, this may seem a bit odd, but it is true. Changing jobs after being preapproved can hold up the process since you will have to verify your employment all over again. While this isn’t necessarily the worst thing that could happen, putting the job search on hold for a while may help prevent issues.
3. Missing bill payments
While this may seem like a given, it is just as important that you pay everything on time after you are preapproved as it was before the preapproval. Not only could missed payments affect your credit score, it could also make it look like you’re misrepresenting yourself following the preapproval.
4. Make large purchases
The reason you need to watch your spending is due to the fact that buying high-dollar items, especially on credit, will change your debt-to-income ratio. If this change is too drastic, it could delay or cancel the process, just like changing jobs would.
5. Make odd, unusually large deposits
Lenders want to make sure you are who you claim to be financially. That’s why any unusual deposits going into your account could draw questions about whether someone is helping you finance the home, or you are trying to make it look like you have more money than you actually do. If you get a bonus check, or something similar, make sure you document it somewhere. A copy of the check is helpful to show the lender if any questions about the deposit arise.
In summary, once you have been preapproved, it is best to hold off on making any major financial decisions until the close of your loan. If you can hold off until after the closing is done, there shouldn’t be any delays related to the financing. Want to learn more about our mortgage loans? Visit https://centralnational.com/mortgages/