Welcome to Episode Three of Demystifying Lending. On this episode, we are going to discuss what to do and NOT do once your loan is approved. If you have not seen part one and part two, visit my YouTube channel.
What NOT To Do While The Loan Is Processing
The loan process is almost complete but there are a few things you still need to do.
When waiting to finalize your loan, avoid making any large purchases. This is also not a good time to leave or change jobs as this can impact your source of funding for securing the loan. Also, do not have anyone pull your credit during the loan process. This can impact your credit score. Be sure to continue paying your current mortgage. Not making your payments will be detrimental to your new loan.
Other things to avoid:
- Spending heavily on credit cards
- Purchasing furniture, cars, or boats
- Getting a new puppy
If you have a lot of cash stored out of your bank account (at home in a safe for example), know that money will not be counted towards your assets. Money must have been in your bank account for at least 60 days. This helps prevent mortgage fraud.
If you want to fix your credit, do not start paying old collections. This could bring old debts new again.
Talk with a lender before you start the home buying process. Remember, nothing hurts worse than finding the home of your dreams and then realizing you cannot afford it.
Feel free to call or email Sheryl or I for all of your mortgage needs.