You have spoken to a lender and you have your pre-approval “in hand” and you are out looking at property to purchase! Congratulations!
But wait, there are some really important “DON’T’s” you should be aware of; you don’t want to jeopardize your ability to purchase a home so don’t do these things:
- Don’t switch banks
- Don’t move money around
Once you have found the home you want to purchase your lender will review your loan package, and they will most likely ask you for the most current bank statements (2 or 3 months worth) for all of your accounts. To eliminate the potential for fraud, most loans require a thorough paper trail to document the source of all funds; changing banks or transferring money to another account could make it difficult.
- Don’t get a new job
Lenders like to see a consistent job history. Generally, changing jobs will not affect your ability to qualify for a mortgage, especially if you are going to be making more money. But for some people a new job may raise some concern and could affect your loan approval.
- Don’t co-sign for a loan for anyone else
- Don’t continue shopping for a mortgage with other companies
- Don’t add to your debt for new purchases (even no payment for 12 months deals)
- Don’t lease a vehicle
- Don’t pay off any old collection accounts, unless told to by your lender
- Don’t enter into consumer credit counseling
- Don’t file bankruptcy
- Don’t stop making any credit payments (including the mortgage on the house you currently own)
- Don’t change your marital status
Adding to your debt or changing your “bottom line” in anyway can affect the loan process. ALWAYS consult with your lender throughout the entire process!
We want to be sure your real estate transaction is as low-stress as possible and as your real estate agent I want to hand you the keys to your new home – so let’s work together to reach the finish line.
Keller Williams, Greater Cleveland - Carol Murphy Team