After negotiating a real estate deal, nearly everybody must now go to the lender and apply for a loan to purchase the property. The first step in obtaining that loan is prequalifying for the loan which is almost always a simple process. Then, you must formally apply for the loan. That’s where problems can arise. They might be avoided by not making the following mistakes.
- Don’t Change Jobs: No matter how upset a boss might get you, don’t change boats in the middle of the river. That’s what got you there. Just continue riding it. You want to show a stable work history.
- Don’t Buy a New Car: You shouldn’t purchase a new car or truck while you’re under contract, even if you pay cash for it. That depreciating asset changes your long-term debt picture.
- Don’t Deposit a Large Sum of Money: Underwriting is going to raise questions if you deposit a large sum of money.
- Don’t Get a New Credit Card: Even if you don’t use it, a new credit card will make a lender nervous. They’re afraid that you’re going to use it.
- Don’t Shop for a Loan: If you’re deep into the loan process, don’t shop for something better. Loan applications can cause your credit score to go down.
You only need to maintain the status quo with your credit for a month or two before you close on that home. After that, you can do whatever you want to do. Until then, don’t do anything strpid.