When applying for a loan to purchase a home, there are things you definitely should NOT do. Learn the top 5 things not to do when applying for a loan.
5 Things Not To Do When Applying For a Loan
- DO NOT make any large purchases including a car or furniture and appliances for your new home. I know it is exciting to pick out items for your new home and get everything lined up for closing. However, the new payment for those purchases (if you buy on credit) could disqualify you from being able to qualify for your loan.
- DO NOT stop making payments on your current obligations – rent, utilities, credit cards, student loans, car payments, etc.
- DO NOT open any new credit cards. Opening any new credit cards could lower your credit score. Your credit will be re-checked right before closing. A lower score may mean you no longer qualify for your mortgage.
- DO NOT make any large deposits or withdrawals that you cannot document.
- DO NOT quit or change your job, even if it is for a better one. A change in jobs means you will have to produce 30 days worth of paystubs for the new job. Having to do this could delay your closing.
I hope learning about the top 5 things not to do when applying for a loan will help save you time and lower your stress levels when purchasing a home. Any time you have any questions about a financial decision that you are going to make between when you apply for your loan and when you close on your home, take a few minutes to call your loan officer or REALTOR. Taking those few minutes to explain what you are doing could save you a lot of headaches down the road or even save you from the worst-case scenario which is not being able to qualify for your loan and purchase your home.
As always, contact me if you are interested in buying or selling in Murrells Inlet or the surrounding area or if you are interested in learning more about living at the beach. Have a great day!
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