Keeping your financial house in order after you’ve initially applied for a loan, but before you’ve closed, will keep the process running smoothly and prevent delays.
Many people don’t realize that credit, income and assets are often reverified right before your loan closing. For that reason, certain activities may affect your mortgage transaction. Keep all your credit accounts current, such as mortgages, car payments and credit cards. Always make payments on or before the due date, even if the account is being paid off with your new mortgage. And keep copies of paycheck stubs, bank statements and records of bills paid.
If possible, avoid these pitfalls that can change your current credit status.
- Changing employment status, unless your new job is in the same line of work and with equal or higher pay.
- Applying for credit or authorizing anyone to make an inquiry on your credit report.
- Changing bank accounts or transferring money between existing accounts.
- Making significant bank deposits that are not attached to your pay.
- Co-signing on a loan.
- Taking on any additional debt by purchasing an automobile or other real estate, or by starting a home improvement project.
- Charging a large amount on existing credit cards. Avoid the temptation to go out and buy new furnishings before you’ve closed on your new home!
Any of these could affect your ability to qualify for a new mortgage. It is important that you call your lender in advance if you think you need to make a change to your credit status, so you can discuss how it will affect the process.
Check out all of our posts in our home buying and selling series!
The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.