Mar
14
Preapproval

After weeks of planning and organizing your financials, you’ve FINALLY been pre-approved for a mortgage. Hooray! However, there are a couple of financial things that you absolutely should NOT do between now and the time you close on your new home.

1️⃣ Do NOT deposit cash into your accounts without speaking to your bank or lender. Lenders want to see the source of all your income, and cash isn’t easily traceable.

2️⃣ Do NOT make any large purchases. No fancy cars. No new furniture. No nothin’! This will increase your debt-to-income ratio, and you cause you to no longer qualify for your mortgage.

3️⃣ Don’t co-sign other loans. When you co-sign a loan, it makes you obligated for that loan which will also affect your debt-to-income ratio. And yes, this is still true even if you’re not the person making payments towards that loan.

4️⃣ Don’t apply for new credit or close any credit accounts. Applying for new credit can affect your interest rate and FICO score. Closing accounts can lower the amount of credit available which has a negative impact on your credit score.

My recommendation? Before you make any financial moves, talk to your mortgage lender.

Don’t have a mortgage lender yet? Shoot me a message and I can connect you to some lenders that my clients have absolutely loved!