Things not to do…
While in the Mortgage Process
So you’re buying a house, congratulations! Now that you’re on the road to owning your new home, you may be tempted to invest in a new couch set, or be ecstatic about saving extra cash at Boston Store’s home goods department by signing up for their credit card; don’t do it!
Big purchases, opening new credit cards, even test driving a car can alter your credit score and seriously mess with your home buying ability… you may lose your dream home in the process! After you have that Accepted Offer, discuss with your Lender if you have any reason why you need to engage in the following activities, before they happen. When in doubt, wait until you’ve sealed the deal at the closing table.
Thing Not To Do While In The Mortgage Process
- Don’t buy or lease a new or used vehicle.
- Don’t quit your job to change industries, start a company or go into business for yourself.
- Don’t switch from a salaried job to a heavily-commission job.
- Or a 1099 independent contractor position.
- Don’t transfer large sums of money between bank accounts.
- Don’t forget to pay your bills, even ones in dispute.
- Don’t open new credit cards.
- Don’t make big purchases on existing credit cards.
- Buy furniture and appliances AFTER you own the home.
- Don’t close any credit card accounts.
- Don’t accept a cash gift without filing the proper “gift” paperwork.
- Don’t make random, undocumented deposits into your bank account.
- Don’t spend the money you have set aside for closing.
- Don’t omit debts or liabilities from your loan application.
- Don’t do things that cause inquiries into your credit score.
- This includes test-driving new cars, they sometimes pull your credit!
- Don’t co-sign a loan for someone.
- This debt will change the ratios that qualified you for your loan.
Should circumstances arise where you need to engage in these activities, consult your Lender first!
Looking for more helpful hints and tips? Contact our experienced real estate agents and they’ll give you an accurate analysis of your current situation, and advise you on best practices when buying or selling your home.