In the process of purchasing your next home? Here are 10 things to avoid before closing on your home!
1. Don’t apply for credit
This includes credit cards, student loans, car/boat loans, appliances, etc.
2. Don’t close any credit cards
Closing your credit cards can negatively affect your credit score.
3. Don’t co-sign on a loan
In order to eliminate additional payment amount from debt-to-income ratios, you’ll need 12 months history of someone else making payments on a loan you co-sign for.
4. Don’t quit your job
Your employment is checked multiple times throughout the transaction. Quitting your job could end the deal.
5. Keep current credit in good standing
Continue to make all payments on current loans on time and in full.
6. Avoid making transfers between bank accounts
Two months of bank statements are typically required when applying for a loan, and if you have several transactions in and out of the accounts, you’ll need to provide documentation.
7. Don’t make large cash deposits
Large amounts of cash (typically 1% or more of your monthly income) will need to be sourced.
8. Don’t file for divorce or separation
A lender will not be able to close on your loan until a divorce or separation is finalized.
9. Don’t ignore your lender
Keep your transaction running smooth by responding to your lender and providing requested documentation in a timely manner.
10. Don’t apply for any other mortgages
You are not able to purchase multiple homes at the same time. Your credit will be checked at the very end of the transaction so this will come up and potentially kill the deal!
