Borrowers Do Not Do List
Borrower's DO NOT DO List
You have found the house you've been carefully searching for, you are working with your mortgage broker to set up and process the loan to purchase. While you are waiting for your closing day, keep in mind that each financial decision you make - outside - the mortgage transaction, could impact the loan.
If you follow these simple suggestions, your loan process should be a smooth one!
1. Do not change jobs. Postpone any career moves until after your closing. One of the factors mortgage companies consider is the length of time at your current position.
2. Do not apply for new credit. This can change your debt-to-income ratios and may reduce your ability to qualify for a mortgage.
3. Do not incur new debt such as purchasing or leasing a new vehicle. This belongs in the same category as new debt, new credit. Don't do it.
4. Do not charge up your credit card balances.
5. Do not make a very large deposit or withdrawal from your bank account.
6. Do not change your mind after locking a rate.
7. Do not co-sign for anyone elses loan.
8. Do not spend your down payment money.
9. Do not travel or vacation near your Closing date. Try to schedule travels and vacation after the closing, ensuring you are available to provide a quick turnaround for information requests.
10. Do not file for divorce prior to closing. Filing for divorce affects your marital status in a court of law. This may affect your loan qualification status.