What NOT to Do Before Closing!

If you are thinking of purchasing a home, or are in the process of purchasing a home already, there are a few things to keep in mind that you should NOT do right before or during the process.

When you apply for a loan, the mortgage lender asks you for a lot of personal and financial information to determine if you are qualified for the loan you are seeking. Your loan approval can be REVOKED if you have changes that affect your credit, bank account, income, or debt. You should avoid these common mistakes:

1. Don't make any large purchases. This includes Cars, Boats, RVs, Furniture or Appliances (for your new home, etc), etc.

2. Don't open new loans or credit lines. These can change your debt-to-income ratio, or may affect your credit score, which could cause you to no longer qualify for your mortgage loan. This INCLUDES co-signing for someone else for any loan, credit card, or other debt. Being a co-signer means that you are personally responsible for the debt (just as responsible as the person you are co-signing for).

3. Don't close out existing accounts. It seems counter-intuitive, but closing out existing accounts can actually have a negative effect on your credit score.

4. Don't make large deposits or withdrawals to your bank accounts. This can raise red flags with lenders! If you receive or expect to receive monetary gifts (for instance, for your down-payment on your new home), ask your loan officer how to document this properly so that it doesn't cause you a problem down the road.

5. Don't change jobs. Don't quit your job or change to a different job before you receive the keys for your new home. Your employment will likely be re-verified on the day you are supposed to close on your new home, and if you are no longer "there" most likely your loan will not be funded.

6. Don't pay your bills late. You MUST pay all of your bills on time. A late or missed payment can cause a big drop in your credit score or cause you not to fit the guidelines for your mortgage loan.

Don't risk your mortgage loan approval by making any of the above mistakes! Have a question on this? Call me! We are open 7 days a week for your convenience and I'm looking forward to hearing from you.

Laura Harbison
Realty Executives Southern Nevada Properties