The seller has accepted your offer, the inspections are done and the house passed with flying colors. You’re in the home stretch and well on your way to owning your dream home. You receive a credit card offer in the mail – 0% interest for 12 months. YES – just the thing you need to buy the new furniture for your new house. Then your lender calls.
Don’t Mess with Your Income to Debt Ratio – One of the main factors lenders use when qualifying people for a loan is their income to debt ration. This is the ratio between your monthly income and monthly debt. Typically, underwriters will run your financials several times during the closing process – sometimes right before closing is scheduled. It may be tempting to buy a new car or purchase other large items for your new home. It’s best to wait until after closing.
Don’t Disappear – Keep in touch with your lender. Chances are there will be last minute information needed and in order to avoid a delayed closing because the lender has given the all important “clear to close,” you must be available to immediately address any issues that may arise.
Don’t Change Jobs – Most lenders prefer to have a two-year job history in hand when qualifying you for a loan. Switching jobs right before closing can cause confusion, which can delay or even kill a deal entirely.
Don’t Open New Credit Cards or Lines of Credit – You might be thinking about buying new appliances or furniture for your home. But just like avoiding large scale purchases before closing, opening a line of
credit can affect your credit score, which a lender will check several times prior to closing. For now, just window shop.
Don’t Be Late – Life is crazy in general and purchasing a new home can add to that craziness. Unfortunately, bills don’t wait for life to calm down. Don’t risk being late with any bills. This too can negatively impact your credit score.
As always, if you have any questions or if you’re looking to buy or sell, please contact me today!