While you are considering the purchase of a new home or exploring refinancing your current home, you should not do anything that will have an adverse effect on your loan from this point through the rest of the process. We know it is tempting to begin making your new house a home or to spend your new savings on fixing your existing home, but this is the time to keep your finances stabilized until your loan closes.
The key is to contact your loan originator if you think you will be making any changes to your financial situation; even the seemingly most logically beneficial moves can backfire and cost you thousands of dollars or even your ability to obtain financing at all.
To have your pre‐approval or loan commitment remain valid please pay close attention to the Mortgage do’s and don’ts below:
- Don’t– Close or open any asset accounts or transfer funds between accounts without receiving the correct documentation required for your loan.
- Don’t – Change jobs/employer without inquiring about the impact this change might have on your loan.
- Don’t – Deposit any monies outside of your payroll deposits, particularly cash or sale of personal property. Many guidelines require substantial documentation as to the source of these deposits.
- Don’t – Open or increase any liabilities, including credit cards, student loans or other lines of credit during the loan process.
- Don’t – Make major purchases prior to or during your contract, such as new car, furniture, appliances, etc. as this may impact your loan qualification.
- Don’t – Advance of any cash from credit card or borrow funds for closing.
- Don’t – Take any unpaid time off.
Entrepreneur Realty is not a licensed Mortgage Broker and makes no claim to conduct mortgage related activity. Any requests for mortgage pre-qualifications are sent to licensed Mortgage Broker or Bankers.