Buying a home is a great life achievement. Everyone desires a place they can call their own. So you have done everything possible to become a homeowner and so far, it’s been going on so well for you. You even have a pre-approval for the home loan.
Is it time to celebrate? Not yet.
Before closing, lenders typically will have to check and recheck your credit which means, you should be very careful not to give him a reason to question your creditworthiness. Therefore, today we are going to look at some of the mistakes most people make after loan approval and before closing.
Never make any major purchases
After the preapproval avoids getting too excited that you cannot wait to move into your new home. More often than not, in the midst of that excitement and anticipation, people often start imagining new furniture and or appliances that will personalize their new home.
That triggers the ‘buying mode.’
So what would stop you from buying that 5-piece rattan patio set for the backyard?
Making a major purchase at this point takes money or credit. Remember, your mortgage approval is usually based on certain criteria for instance debt to income ratio, cash reserves, and so many others.
When you make any major purchases at the moment, you change the parameters of this equation which jeopardize your closing and funding for the new home.
Wait before changing your job
Changing your employer means that the lender will have problems verifying your salary thus causing delays in this process.
That doesn’t mean that you are ignoring your passion and a great career opportunity.
It just means that you should wait a little longer.
Opening a Credit Account
It’s often easy to fall into this trap. With credit, it’s easy to buy this and that without ever having to think about the consequences. Similar to taking on new debt, applying for a new credit account will negatively impact your mortgage approval.
A credit inquiry is very necessary for a new account and will reduce your credit score by a few points. To add to that, the lender will be left wondering, just how much are you willing to spend with the new account.
The loan approval process is heavily dependent on whether you can be able to pay off the loan without it having to be a struggle. As such, you should never give the lender any reason to doubt your creditworthiness.
There are so many other ways through which the mortgage approval process can fall apart even before you get to the closing stage. As such, it is important that you consult with your REALTOR first and if you are in Texas you are in luck because we have a phenomenal VIP Agent stationed there.
About The Power Is Now Media
The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com
