Or anywhere else for that matter!
In no particular order, because doing any one of them could be disastrous, here are the most common mistakes and mess ups that Buyers make after they have met with their lender and made application for a home mortgage.
Don’t apply for any other new credit ~ did you know that even applying for satellite TV or an automated fuel account for your new home will affect your credit score in a negative way as most companies run a credit report before responding to your request for those accounts?
Don’t close any credit (credit cards, lines of credit) ~ lenders, and your credit score, take into account how many years and how many lines of credit you have, so closing any of them may negatively affect your credit.
Don’t have any more than 30% of allowable debt on a credit card ~ credit scores go down if you use more than 30% of the allowable credit line and drops even further if you use more than 50%
Don’t make any late payments ~ credit scores decrease every time you have a 30 day late payment so make sure your payments not only get mailed on time, but allow for the time needed for the company to document your payment.
Don’t change your income stream ~ this isn’t the time for a job change! Lenders like to see stability in your work/income so wait until the closing to make any changes. And if you are using a loan program that has income limits, you may even want to turn down that raise as it may bump you out of an income level.
Don’t allow any credit card to run past its due date~ again, those 30 day late payments are horrible for credit scores
Don’t lose contact with your lender or your real estate agent ~ we’re here to help you and make sure that you make it to closing! Share everything with your lender; they need the entire picture of your financial situation to make sure they can help overcome any obstacles.
Don’t deposit any undocumented large sums of money into your bank account ~ if you plan to sell your motorcycle for the down payment, please make sure you have a signed bill of sale, documentation on the bikes value and a check for the sale….and get it all to the lender for their approval!
Don’t forget about Re-verification ~ this almost always happens right before a closing, and if your credit/income/debt picture has changed since your initial loan application, you may not hear those wonderful 3 words you’ve worked so hard to hear “Clear to Close”