This is a list of things that could prevent you from buying a home especially if you have already been approved for a loan.
1. Don’t apply for new credit cards. Only use your credit cards as you have routinely been doing. A new credit report will be obtained prior to the closing and a lower credit score could affect the ability for your loan to be approved.
2. Don’t buy or lease a new car! Lenders look closely at your debt to income ratio and a large monthly payment for leasing or purchasing a car could impact those ratios and prevent you from getting the loan for your house.
3. If the new purchase of furniture or appliances increase the monthly payment you are responsible for, there is always the possibility that it may disqualify you for the loan.
4. Depending on your available credit, closing a credit card with a high credit limit could hurt your credit especially if the remaining cards have high balances. Your credit score could fall when closing a card reduces the total available credit. Better to wait until you are in your new home to close the account.
5. Don’t change jobs! Sometimes new jobs have probation periods which must be satisfied before the income for that new job can be considered for qualifying for your loan.
6. Don’t spend your savings. Lenders want to make sure there is a fanancial safety net for expenses after ou close on your new home. Don’t deplete your savings to buy furniture or spend on anything else before the closing. The lender will check to make sure you have enough reserves for a few months. Also don’t try to use your credit cards for cash advances for the down payment.
7. Don’t move money around without a paper trail. If you receive gift funds from family members, there needs to be a paper trail for that or any large deposits or withdrawals. You may be receiving a bonus at work or taking money from an IRA, so be certain to have a paper trail to prove that deposit. It is not a big dea if you have the paper trail.
8. Don’t be late with any payments.One of the most important aspects of your credit score is the timeliness of your current payments that come due. Don’t get caught up in the excitement of buying a new home so much that you forget to make your current payments on time and in full, if possible.
Your agent and lender will let you know about these items at numerous intervals during the homebuying process to ensure that you don’t forget. Don’t jeopardize the opportunity to buy your new home.