Three Things NOT to Do After You Get Pre-Approved

Buying a home is one of the biggest financial decisions you’ll ever make! Between your pre-approval and closing on your house, there are a number of financial changes you should NOT make. This time period is very sensitive, and these financial actions could jeopardize your ability to close on your new home.

• Do Not Cosign Loans or Apply for New Credit

You are accountable for any loan that you’ve signed, even as a co-signer. Taking out a new loan will change your debt-to-income ratio, which changes your lender’s documentation. In addition, taking out new loans (such as a new credit card or car) affects your credit score and could also affect your mortgage eligibility.

• Do Not Make Large Purchases or Deposits

Seeing large amounts of money going in or out of your bank account could be a red flag for your lender. If you need to make a large deposit or purchase, contact your loan officer.

• Do Not Close Any Accounts

Your credit score is partially based on your length and depth of credit history, so do not close any lines of credit without first speaking to your loan officer.

Now that we’ve covered what not to do, here’s what you should do, financially, between pre-approval and closing: Keep your lender in the loop!

If it’s absolutely necessary to make any of the above-listed actions, reach out to your loan officer. They will be able to help you through any of the mortgage eligibility ramifications these financial actions could have. In addition, if you have any changes in income or employment, give your lender this information as soon as possible.