10 Mistakes You Can't Afford to Make Before Closing on Your Home

by Bob Lucido Team

LARGE-PURCHASE ITEMS | Do not buy things like cars, boats, or other expensive items.
Big ticket expenses mean nothing but added debt to your lender. This will delay the process of buying a home no matter if the price tag is well within your means.
JOB CHANGE | Do not quit or switch jobs.
Changing jobs even if for good reason could potentially cause your lender to question your financial stability.
CREDIT CHANGE | Do not open or close credit lines.
Taking on new debt, no matter how small, can throw off your debt-to-income ratio which could potentially disqualify you from mortgage lending. Wait to open new credit cards and extend credit lines until the home buying process is over.
BANKING | Do not change bank accounts.
Wait until your home is closed to withdraw, deposit, or transfer large amounts of money. Generally, if you move more than $500 at a time it will impact your loan approval because your loan approval was based on your finances at the time of application, and now they have changed.
GHOSTING | Do not ghost your loan officer. Be sure to answer all questions and communication.
Ghosting will delay the process, waste valuable time, and potentially cause important information to be missed.
DELINQUENCIES | Do not pay bills late.
A missed payment even months before you apply could lower your credit score and jeopardize your chances of securing a loan. You especially don’t want to miss current mortgage payments, this will make you ineligible for a loan from most lenders for at least a year.
CREDIT CHECKS | Do not let anyone other than your loan officer run a credit check on you.
Credit inquiries can lower your credit score as much as 10 points each time it’s checked.
LOANS | Do not sign or cosign a loan.
Having multiple outstanding loan payments or opening additional loans while in the process of purchasing your home is not recommended.
LARGE DEPOSITS | Do not make any large deposits other than your paycheck.
Suspiciously large deposits may raise questions from your lender and they may have to adjust your mortgage calculations accordingly.
PAYDAY | Do not take an advance on your salary.
All of your finances have been locked in at the time of approval. Substantial additional income post-approval could reset the process.

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Bob Lucido Team

+1(410) 465-6900