When purchasing a home, your mortgage pre-approval is based on your current financial situation. That’s why once you are pre-approved, you should avoid making big changes to your finances. Here are several things you’ll want to avoid doing while you’re in the process of completing a home purchase:
1. Taking on more debt. Talk to your lender first before you open any new credit accounts, request a credit line increase or co-sign on a loan. As a general rule, you’ll want to avoid taking on any new debt before you close on your home. Your loan approval was based on your income, debt levels and other financial resources, and changing that picture in any way can put your loan in jeopardy.
2. Changing your job. Your loan approval is based on a number of factors, including your employment status and pay.
3. Making a big purchase. Check with your lender before making any big purchases, either with credit or with cash. Many home buyers want to buy furniture and other big-ticket items. Doing so before you close on your home is never a good idea. Even after you complete your home purchase, resist the temptation to pile on the credit card debt as you purchase items for your new home. You don’t want to have to pay for that new dining room table at double digit interest rates for years.
4. Making late payments. Stay up to date on all of your credit obligations and utility payments. Now’s not the time to have overdraft your checking account or pay a bill late.
Whether you’re saving up to buy a home or already own one, I can help you achieve the financial “peace of mind” you’ve dreamed of through:
1) Better Budgeting
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3) Debt Management
4) Credit Building
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