Many people take some time to finally find the residential property for sale of their dreams, and when that day comes you may feel that you can relax. Having to get approved for a mortgage can often mean scaling back on your purchases and living frugally, but after your approval, you can go ahead and make those purchases, right? Wrong. Read on to find out why you should not let your guard down with your finances until they place the house keys in your hand.
Have you put off buying that new mattress or living room furniture? You may need to delay those large purchases a few more weeks or months. No matter how you plan to pay for it, you should wait until after closing to make any large transactions, for any reason. The lender is continuously monitoring your credit use to ensure that you will be able to make good on the financial commitment you are about to make. That use extends to your checking and saving accounts, too. If you want to lend a friend $500.00 until their next payday, you could end up creating a huge problem with your financing. Your lender expects you to maintain a certain balance in your accounts to pay any closing costs, so do not disturb those accounts for any large or unneeded reasons.
Do you really need that new credit card or loan to make home improvements? You may have a legitimate need, but any new credit that you apply for could negatively affect your credit score, which can affect your lending. Even if you have already gotten an approval, that approval is based on a certain status that must not be disturbed until after the closing date. Even a credit inquiry could reduce your credit score enough to throw a monkey wrench into your plans for closing by a certain date.
Have you been offered a new job? A better position with the competition? You may be thrilled, but your lender might be less so. Your lending was approved based, in large part, on the stability of your income. Your income is usually checked for the past few years, and lenders like to see workers that have remained in the same job for several years to show stability of income. While getting a new job before your closing may not end up causing your lender to withdraw their offer of financing, it could delay your closing long enough for them to verify the information about your new job. To be on the safe side, delay making any major career moves between your offer and the closing.Share