Are you getting ready to close on your new home? There are a lot of things to take care of before the big day, so this blog post is dedicated to simple things you can do that will ensure your home loan closes with ease!
- Do not change jobs or become self-employed. Any change to your income can negatively impact your closing and possibly even halt your loan approval.
- Do not buy a new vehicle (unless you plan on living in it!) Big-ticket items purchased before your house closes raise a giant red flag with lenders.
- Avoid falling behind on credit card payments. Even one late payment can make your credit score go down significantly.
- Steer clear of spending down your personal savings. Lenders check your bank accounts prior to closing and if you start dipping into your savings you may not have enough to cover closing costs.
- Don’t let anyone check your credit score. This has a small impact on your credit score under “inquiries.” Too many inquiries at once can indicate possible new lines of credit being opened and delay closing.
- Refrain from making any large deposits other than your paycheck. Especially cash deposits you cannot verify.
- Keep the same bank account and don’t open any others. All new accounts are instantly reported to the credit bureau and immediately show up on your credit report.
- Do not co-sign for anyone! And we mean everyone!!!
- Refrain from using credit cards. Even a small purchase can affect your debt to credit ratio.
- Don’t buy any furniture just yet — 10 days prior to closing employee verification and credit occurs. An increase in debt may lead to a negative impact on your credit score and interfere with your loan approval.
Ready to buy a home? Or find out how much you could be pre-approved for? If you are ready to start the loan process I can help you with that! Send me an e-mail at edavis@guildmortgage.net and let’s get started!
