After jumping through all the hoops, you finally have gotten approved for a mortgage and now you’re just waiting to make it to the closing table. Make sure you or your spouse don’t throw your loan approval into jeopardy by making one of these common mistakes:
- Making a big purchase: Never make major purchases, like buying a new car, a flat screen or furniture, until after you close on the home. Big purchases could change your debt-to-income ratio that the lender used to approve the home loan and could throw the approval into jeopardy.
- Opening new credit: It is not the time to open up any new credit cards, even if you plan to purchase something with 24 month zero interest and zero payment. It is a financed purchase so it is actually a credit card purchase. The purchase amount rolls into your debt right there and it is very much likely to jeopardize your loan approval.
- Missing any payments: You really need to pay extra vigilant about paying all your bills on time, even if you’re disputing one.
- Cashing out: Avoid any transfers of large sums of money between your bank accounts or making any undocumented deposits — both of which could send up “red flags” to your lender.
So, do not celebrate it too early. Wait until the escrow is closed, the title is recorded and your agent has released the keys of your new home to you.
