Mistakes to Avoid

Ten Things You Can Do To Ensure A Smooth And Successful Transaction

1  |  Keep your same job!

Getting a new job, quitting your job, or becoming self-employed could negatively impact your application.

2  |  No big purchases prior to closing!

Wait until AFTER closing to purchase a new car, truck, van, motorcycle, RV, boat, etc. If you need to make a new purchase sooner, talk with your loan officer first to see how it would impact your application.

3  |  Maintain regular spending habits.

Overusing credit cards could have a negative impact. Keep making your regular timely payments on all accounts, and don’t stop paying your mortgage (if you have one).

4  |  Keep your down-payment money in the bank!

Don’t spend it, and don’t keep it as cash at home.

5  |  Disclose ALL of your monthly debts and obligations

Things like IRS debts, SBA loans, child support payments, etc.  They will eventually come up, so make sure your loan officer knows about it up front!

6  | Don’t furnish your new house until AFTER closing!

Buying new furniture or home appliances before closing could impact your sale.  If you need to buy before closing, consult with your loan officer first.

7  | Avoid new credit inquiries and opening new accounts prior to closing.

Your credit is reviewed before closing to see if any new inquiries or accounts have opened since the initial credit pull.  This could slow down the process, create more paperwork, or could even cause your loan to fall through.  

8  | Avoid making large non-payroll deposits into your bank account.

“Large deposits” have to be sourced.  We need to show the paper trail of where it came from, and make sure it was an acceptable source of funds.  Please discuss these deposits BEFORE you make them.  That way, even if it’s an allowable deposit, we can determine what documentation you’d need before it’s too late (like selling a car to someone without a bill of sale).

9  | Maintain your existing bank accounts

Try to not open new accounts, or move large amounts of money between accounts.  It creates more paperwork and more documentation if you do.  To avoid that, I recommend to wait until after closing if you want to open new ones.

10  | Don’t be a co-signer for someone else’s loan.

You are now liable for that debt, and it impacts how much you can get approved for.  It creates a new credit inquiry that we need to explain/document.  And if the main borrower does not pay on time, it shows up as a late payment on your credit and can hurt your credit score!

If at any time you are unsure about how something might impact your loan application and approval,

CONTACT your loan officer!