Follow these tips to reach the end zone!
One thing to know is that your credit and financial history aren’t just evaluated when you seek pre-approval. Your credit can be pulled again at any point before closing is complete, and major changes could de-rail your loan approval.
Here are some “fouls” to avoid, so you make it to closing.
Don’t open new credit lines or close current ones. Your credit history plays an important role in how a lender judges your creditworthiness. You don’t want to make changes to that during the mortgage application process.
Don’t accept a large cash gift without properly disclosing it. It’s fine if a friend or relative wants to help with money toward closing costs, but your lender needs to know about it. A gift could be seen as a cash loan that needs to be repaid. Talk to me before accepting any major deposits.
Don’t max out your credit. Hold off on major purchases, even those related to your future home. Use less than 30% of your available credit for the best possible score.
Don’t miss any payments. Payment history accounts for most of your total credit score, so avoid making a late payment. Always pay at least the minimum amount every month.
Don’t switch jobs. Accepting a new role during the loan process isn’t impossible, but it will require a new verification of employment. If possible, stay at your current job so your employment and income remain consistent, or talk to me first about how a job change might impact your loan.
Now that you’ve learned the game plan, it’s time to take the field! You can make it to the home-owning end zone, and I promise there won’t be a penalty for excessive celebration.