Charlotte NC Home Buyers: WATCH Your Credit Even AFTER Loan Approval on Your New Home
You’ve done the legwork–found your dream home, completed the lending criteria and are calling movers and scheduling utility activations. Your dreams of what your home will look like when you’re living there are SO exciting and we completely understand that! However, don’t let those sugar plum visions get in the way of Closing on your new home.
Here are a few no-no’s when you’re in the process of a mortgage loan application:
Do NOT quit your current job, change jobs or start your own business – WAIT!- Do NOT purchase a car, truck or van–otherwise, you may find yourself living in it!
- Do NOT use your credit cards abnormally or allow any of your accounts to fall behind–again, WAIT!
- Do NOT spend the money that you have so wisely set aside for your home purchase–you may find yourself on the home-buying back-burner for as long as it takes you to recoup this money.
- Do NOT close any open credit lines/accounts without first consulting your lender. Your lender may require you to pay off or down your car payment or another credit line but, he or she will prepare you for this in advance.
- Do NOT transfer money from one account to the other–especially 401K accounts, unless advised to do so by your lender.
- Do NOT buy new furniture for your new home on credit and certainly don’t apply for credit at the furniture store. Wait to Close or at least until you can obtain clearance from your lender.
- Do NOT apply for ANY new credit cards or lines of credit; this too, can wait!
- Do NOT change banks. If you simply must leave your current bank, wait until this transaction is Closed.
- Do NOT make any large cash deposits into your bank account without first discussing this with your lender. Many parents will pull money out of their home safe (or I’ve even heard, out from under their mattresses!) to help their adult children with their down payments but, be sure to share your plans with your lender first.
- Do NOT co-sign any loan or credit card for anyone, not even your own adult children.
This sounds like alot of no-no, parent-type rules but, lending criteria is stricter now than ever before. Your bank account will be reviewed up to the time of Closing by the underwriters of your loan. Your credit scores will also be reviewed within 48 hours of your Closing time, as will your employer verification be completed. So, it’s wise to spend these next 30-60 days packing and addressing the tasks at hand.
Enjoy those visions of sugar plums—just don’t react upon them!