Things to Avoid After You Apply for a Mortgage

December 31, 2021

Buying a home is such an exciting adventure! Oftentimes people get caught up in the excitement and start planning for moving in and decorating or other major purchases. One thing that you do have to be cautious about though is moving large amounts of money, major purchases, or financing anything during the purchase process of your home. I would highly recommend to anyone to consult their lender before doing any of those things because it does have the potential to impact the home loan process.


Here are a few things to not do after you apply for a mortgage. These are just important things to know and just to remember during a home buying process. 


Don’t deposit cash into your bank accounts. 
Lenders need to see a source of the money and cash is hard to determine the true source. If you have to deposit cash for some reason during this loan process time consult your lender or loan officer.


Don’t make any other large purchases that have to be financed or cosign on any loans with anyone. For example a new car or furniture. 
If you apply for other loans, finance other things like a car or anything that comes with a monthly payment changes your monthly debt. This changes your debt to income ratios and banks have certain criteria for their loans. If you have a higher debt to income ratio it makes for a riskier loan and some banks are less likely to want to do the loan.   


Don’t apply for new credit cards or close any credit accounts.
It doesn’t matter if it is applying for a new card or buying a car when you do any of these things they will run your credit. When you have your credit run it will ding your credit and it will affect your FICO credit score. Also, many people believe that closing credit accounts is better but that is not always the case. The length and depth of your credit can help you when lenders are looking at your credit history. Also, if you have these open accounts but they have no balance it shows as available credit. Closing these types of accounts can negatively impact your score. Ultimately, the negative marks on your credit can cause you to get a high interest rate or even sometimes not get the loan all together. 


Here’s the bottom line, if you are looking to get a home loan in the near future, do not make any changes financially. Small or large changes in your finances can have major impacts on your credit as well as your ability to get approved for a mortgage. The biggest piece of advice I can offer anyone looking to get a loan on a home is to get a loan officer or a lender and be fully open with them on any job changes, past credit issues or  future purchasing plans before getting to the loan process. Finding your dream home and finding out you cannot get financed for it would be devastating. So, if you are ready to start searching for your dream home contact me today and let me get started working for you. I want to be YOUR realtor!

 

Alicia Edwards - Realtor

I want to be your realtor! Let me help you find your next home or sell your current one. Call me and let me get started working for you today (678) 622-0302. I look forward to talking to you soon. Your Home, Your Future, My Commitment!

Looking to Buy or Sell, Contact Me!

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