Important Tip About Credit and Mortgages
How many times in life have we heard this? “Don’t change a thing!” All to many we suppose, but with good reason more than likely. It’s the same thing in the home loan process while a person is at the early, middle and end stage of getting a loan for a home purchase. We have seen it derail a purchase in its entirety if it upsets the balances of lending ratios.
Let’s spell out the first big don’t. DO NOT apply for new credit during the loan application process up and through the date of loan closing. The debts and payments you disclose at the time of loan application must not significantly change through the date of closing or you may no longer qualify for the loan.
A prime example of this is something along these lines. In preparation for their new home, Sam and Minnie decided to go out and shop for all new furniture so it would be there for the move in after closing. They liked $19, 881.00 worth the new furnishings one day, and decided to finance the purchase so it would not effect their balance in savings. While being aware of the savings amount, they were negligent to the loan they essentially just took to buy new furniture. It can derail faster than you know!
Ask your loan officer early on the in process, what intentions you have financially while the loan process is in place. Don’t lose a home purchase on such an honest mistake. Besides, empty boxes turned upside down make for the best dining tables when you first move in.