Just because you got pre-approved doesn't mean you're in the clear! It's unfortunate, but we see deals fall apart for numerous reasons. One of these reasons is because the buyer may no longer qualify for the loan that they applied for. And it can be as simple as trying to finance a couch!
We talked to Larry Zellers at CUSO Home Lending to find out exactly what NOT to do during your loan application process (from being pre-approved all the way through to closing). Here are some of the top things to avoid doing...
Changing jobs, becoming self-employed or quitting your current job
Becoming late on credit card payments
Purchasing any new vehicle, furniture or anything that requires financing
Allowing your credit to be pulled for other things
Making large "unsourceable" cash deposits into your bank account
Co-signing on a loan for someone else
All of these things (and possibly more) can effect your ability to purchase a home. Any slight change in your credit score can remove your eligibility for a particular loan program you may have been applying for. These seem like simple, mundane things but they can have a drastic effect that is frustrating for you, the seller, your Realtor, the lender and whoever else may be involved. All parties have the same end goal and we just want to ensure that everyone is happy!
If you're going through the mortgage process, be extra aware of the choices you make around finances. If you have any questions about what you should or should not do, reach out to your lender! Lenders can help guide you in the right direction so that you have a smooth transaction through to closing.
Wondering how much you could get pre-approved for? Reach out to Larry at 207-814-0013 or email@example.com (NMLS # 1534565).