Congratulations on applying for a mortgage! Here are some things you should avoid doing between the time you apply for a mortgage and the home closing:
- Don’t make any large purchases: Avoid making any major purchases such as buying a new car or furniture on credit. Doing so can increase your debt-to-income ratio and affect your credit score, which could impact your ability to get approved for the mortgage.
- Don’t change jobs: Lenders want to see a stable employment history, and changing jobs could signal uncertainty or instability, which could affect your mortgage approval.
- Don’t miss any payments: Keep up with all of your bills and payments, including credit cards, car loans, and other debts. Late or missed payments can negatively impact your credit score and make it harder to get approved for the mortgage.
- Don’t open new credit accounts: Avoid opening any new credit accounts or applying for new credit cards during this time. Doing so can also affect your credit score and debt-to-income ratio, which can impact your mortgage approval.
- Don’t co-sign for someone else: Co-signing for someone else’s loan can impact your credit and debt-to-income ratio, which can affect your ability to get approved for the mortgage.
- Do not deposit large amounts of cash into your bank account, as this can raise questions about the source of the funds and may require additional documentation to be provided to the lender.
Overall, it’s important to maintain a stable financial situation and avoid any major changes until after the home closing. If you have any questions or concerns, it’s best to discuss them with your lender.