You’re going through the mortgage process. Everything is on track to close on time. You’re picking out paint colors, and BAM! Something happens that stalls the process, and you’re on the ropes. We definitely don’t want anything to come in the way of your new home. So let’s talk about the 10 things to avoid doing during the mortgage process.
#1 – Don’t open a new line of credit. Or close old ones, for that matter. Either one can negatively affect your credit.
#2 – Don’t take out payday advances. You want to show that you’re responsible and lend-worthy, and taking out payday advances.. doesn’t do that.
#3 – Don’t pay your bills late. You’ll definitely take hits on your credit for that one.
#4 – Don’t quit or change jobs. After you’ve closed – do it! But in the meantime, it’s best to wait.
#5 – Don’t co-sign a loan for someone. This is a toughy. You want to help someone out by doing so, but then you are legally responsible to pay that debt if they default. Plus, it increases your debt-to-income ratio.
#6 – Don’t change banks. Then you’ll have to show statements for each bank and sources for funds. It’s really a lot of hassle. If you really want to switch banking institutions, just wait until after closing.
#7 – Don’t make large purchases. I’m talking a car, a boat… whatever. It will affect your credit, and it’s just not worth the extra paperwork and possible delay.
#8 – Don’t let another lender pull your credit. Remember, credit inquiries can lower your score.
#9 – Don’t make a big ol’ deposit into your bank account. Of course, your paycheck is fine. But when your lender sees a large sum of money deposited into your account, you’ll need to provide source information, which could slow things down.
And finally, #10 – Don’t ignore your lender! Keep your phone nearby and check your email frequently. You’ll want to answer your lender’s questions and provide info as soon as it’s needed to keep things moving along.
The best thing to do during the mortgage process is to stay cool, roll with the punches, and don’t make any hasty decisions that might impact your credit.
If you have any questions, a Homespire Loan Officer is always available to help you out. Visit https://www.homespiremortgage.com/loan-officer-search/ to find an expert mortgage advisor near you.