After you  are in contract, you want to keep your financial information as consistent as possible.   It is very important once you have done all the work to  be preapproved and find the home, you want to be able to close on the home purchase without any stress and last minute issues.

Don’t switch job or quit your job

Your lender has preapproved you based on your time, distance and salary at your current job.  Changing that after you are in contract will require to verify and validate all of the new information. Income is one of the most important, if not the most important factor of the application.  If you get laid off or have a new opportunity have you are preapproved call your Mortgage Loan Officer right away to be sure that they are working on getting updated information.

Bank Accounts, large deposits and cash withdrawals

Don’t change bank accounts, withhold bank account information, take out large cash withdrawals or deposit large cash deposits.  The amount in your bank account is sourced for the down payment and closing costs.  Cash deposits cannot be used, since they are not able to be sourced.

Do not buy any furniture or appliances without talking to your Mortgage Loan Officer before you close escrow.

Credit Inquiries and New Credit

The Lender will run a report at the close of escrow to see if any new inquiries have been run and any new accounts have been opened. If there are any surprises at the close of escrow your Underwriting will require an updated Credit Report with the new account on the report.  This may cause a delay in funding your loan. In extreme cases the new debt may cause you not to be able to qualify for your loan any longer.  Often times, when you go to purchase something the cashier will ask you to try to open a new account to get a percentage off, if you have been preapproved your answer must be no!  Talk to your Mortgage Loan Officer if you have opened a new account or had a credit inquiry so that you don’t have any last minute problems and delays.

Don’t Co-Sign on a loan for anyone

When you co-sign on a loan, you are doing more then a a favor. You are making yourself responsible for that person’s payment.  That obligation will need to be counted in your debt to income ratio.  When getting preapproved, make sure you discuss this with your Mortgage Loan Officer to be sure they know it is on the report and another person pays it.

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