Spend money carefully prior to closing
Your mortgage pre-approval was granted to you based on the amount of money you had at the time of the pre-approval in your savings accounts, checking accounts, retirement accounts, etc. and was based on the amount of debt you had at the time (car payments, student loans, your current mortgage if you already own a home, etc).
If you buy a TV, a new car, new furniture, etc. between now and closing, it jeopardize your chances of being approved for your mortgage loan, as the lender pulls your credit and verifies money on deposit the day before closing.
Therefore, it is imperative you spend as little money as possible between now and your closing date. In addition, continue to pay all of your monthly bills on time, do not open or close any credit cards, don’t take extravagant vacations, etc. Many buyers think it won’t make a difference if they buy a couch, new TV, etc. and charge it to their credit card, but it very well could mean the difference in whether or not you qualify for your loan. So please do not buy ANYTHING big until after closing. Then go wild!
If in doubt whether a potential purchase will affect your ability to obtain a mortgage, please speak with your mortgage lender before buying.
Mortgage Do’s and Don’ts Every Buyer Should Know
| → DO review your personal information on your loan application for accuracy. | → DON’T acquire any new debt or make any large purchases during your loan transaction. Your monthly obligations will be verified again at the time of final loan approval. |
| → DO notify your loan officer immediately of any employment or income changes. Income and employment will be verified again just before your loan closing. | → DON’T allow any other type of lender to pull your credit, as inquiries can impact your current credit scores. |
| → DO keep a paper trail of any large deposits into your bank accounts. This may include copies of checks, deposit slips, or details on the liquidation of stock and/or other asset accounts. | → DON’T deposit cash or unsecured borrowed funds prior to contacting your loan officer. These funds may not be an eligible source for down payment or closing costs. |
| → DO provide your loan officer copies of all pages of documents requested during the processing of your loan. | → DON’T hesitate to contact your loan officer or me with any questions or concerns. Everyone is here to assist you through the entire transaction. |
Questions? Call or text me at 405-585-6580 or email Steve@SoldonShawnee.com.
