You’ve Applied for a Mortgage — Don’t Mess It Up Now!

Okay, your offer was accepted, you applied for a mortgage and you’ve been assured it shouldn’t be a problem. So what do you need to do now? The question might be better phrased “What do you need to NOT do now?”  Here are 5 things that you MUST be aware of if you want to keep the mortgage from being denied, even up to the closing day.

    • DO NOT apply for any credit, anywhere. Nope, it’s not the time to shop for a new car or even a cell phone. Every single inquiry that appears on your credit report now will require and explanation and documentation.  Any new credit now can alter your credit scores as well, which can result in your loan being denied. Stay away from ANY inquiries at all before the closing.
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    • Don’t increase the balances on your credit cards — don’t buy that tv, or appliances or anything that can impact your credit or debt. A small change in your credit score now, can increase your mortgage rate or, again, result in a denial of your loan.
    • Don’t open any new credit card or apply for new loans. Okay, you should have known this one if you read #1 above. But just because you realize you have some money left over or your payment won’t be as big as you thought, DOESN’T mean you can lease that new car now or get a Home Depot credit card. WAIT until after the closing.
    • Don’t make any cash deposits or large check deposits into any bank account. Most deposits will be questioned (except for regular paychecks). You don’t want it to look like someone is helping you with your down payment or helping you with any bills.
    • Remember, it is very likely that your credit report will be run again prior to closing to see if you still qualify. If there is even a slight change in your credit score — either because of an increase in your debt or a couple of inquiries, you rish having the loan denied at the last minute.

    There you have it, some new rules that many people havn’t been aware of until it was too late. Pay atttention and take them seriously for a smoother home buying process. As always, if you have any questions leave a comment, email me, or call me. I’m glad to help you any way I can.

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