You've done everything right so far. You've found a great lender, received your pre-approval letter, are working with a great agent (or two :-), found the home of your dreams, have an accepted offer, inspections & appraisal have been completed and you submitted your loan package for final approval. You're all done, right? Wrong.
Until you close on your new loan, it's more important than ever to keep your credit steady, most lenders perform one last check right before they issue funding. A decline in your credit score, or other changes, can mean the difference between getting the home or losing the loan...
Things You Should Never Do After Applying For A Loan
- Don't Change Jobs - While sometimes it's unavoidable, especially if a new job is the reason for the move, any change in income or job status creates risk and should be avoided if at all possible. Consult with your lender from the beginning.
- Don't Make Any Large Purchases - As tempting as it may be to go shopping for new furniture, wait until after you close to make any large purchases. This applies to furniture, appliances new cars, etc. New loans/balances can change your debt to income ratio and cause you to no longer qualify for the loan.
- Don't Apply For New Credit - Every time someone runs your credit report, your score is affected. This is not the time to search for a new credit card with a better interest rate...
- Don't Close Any Credit Accounts - It might seem counterintuitive, but generally closing or paying off loans or credit cards might bring your FICO score down. The length of time you've had your credit open is a positive effect on credit scores. Unless your lender advises you to take other action, leave it be.
The bottom line is: Avoid making any changes, unless your lender advises you to. Of course, things come up from time to time as life is happening. Stay in close communication with your lender, ask if you are unsure about what you can and cannot do until closing.
Questions? Reach out to us any time!