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10 PITFALLS that can trip up your loan closing.
Just because you’re preapproved doesn’t mean your loan is a done deal. Lenders don’t like changes to the financial information you
submitted on your loan application.
AVOID these mistakes so you don’t jeopardize your loan approval:
- Do not fail to disclose debts you owe (payments to the IRS, child support, alimony).
If anything new shows up during the processing of your loan, it could change the circumstances of your loan. - Do not apply for new credit.
(e.g., Don’t let anyone run a credit check on you.) - Do not make major purchases before closing.
(e.g., furnish your home) - Do not co-sign a loan for anyone.
- Do not close any existing credit or bank accounts.
- Do not stop paying your bills or get behind on your bills – even your mortgage, if refinancing.
- Avoid changing jobs.
- Save your money until after closing, as you will need to have enough money for down payment, closing costs, and possibly reserves.
- Do not borrow money or make bank deposits larger than your usual paycheck.
If you must do so, make sure you keep a paper trail to document this. - Do not deposit cash into your bank accounts.
Not sure? Ask – Any major changes in person income, assets or debt can alter the terms of your mortgage offer or lead to loan denial. If you’re not sure how an action might affect your application, call us for advice.
What should you DO?
- Maintain the status quo
- Avoid making financial changes
- Enjoy yourself when you become a homeowner!
If you have concerns, contact us.
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