6 Don’ts After Applying For A Mortgage
If you're buying a home and are using a lender, here are a few things you should not do after applying for a mortgage.
Don't Deposit Cash into Your Bank
Lenders need to know where your money is coming from, and cash isn’t the easiest to trace. Before depositing any amount of cash, discuss with your loan officer how you'll need to document it.
Don't Make Any Large Purchases
With new debt, you increase your debt-to-income ratio. Higher ratios make for riskier loans, and you may no longer qualify for the mortgage after those purchases.
Don't Co-Sign On Loans
When you co-sign on loans, you’re accountable for those loans. Unfortunately, you'll increase your debt-to-income ratios as well, which can jeopardize your qualifications for the mortgage.
Don't Change/Open Bank Accounts
Be consistent with your accounts, Lenders need to know where your money is coming from, and it's much easier when things don't change during the process. Consult with your lender before you proceed.
Don’t Apply for Credit
Whether it’s a new credit card or financing furniture, when your credit report gets run, your FICO® score will be affected. Lower credit scores can determine your interest rate and even your eligibility for approval.
Don’t Close Any Credit Accounts
The main factors of your credit score are the length and depth of your credit history and the percentage of the total usage of credit over available credit. Closing those accounts harms both of those determining factors of your score.
If any changes in income, assets, or credit occur, inform your lender to ensure you are still qualified for a mortgage. Always consult with your loan officer before you do anything financial in nature.
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