Congratulations your offer was accepted and you’re now under contract! However, if you’re obtaining a mortgage you’re not out of the woods yet. There are numerous things that can blow up your financing and below are the top 8 mistakes homebuyers make during the loan process that can blow up their financing.
8 Ways to Blow Up your Financing when Buying a Home
Job Change
Do not change jobs, quit your job or work fewer hours decreasing your income. If you plan on changing jobs or get fired contact your loan officer immediately to discuss options.
Big Expenses
Do not purchase big-ticket items, like a new car or furnishings for your new home. While it may not seem like a big deal buying big-ticketed items can easily blow up your financing.
Credit Check
Do not let anyone pull your credit, every time your credit is pulled it may lower your credit score and impact your loan eligibility.
Credit Charges
Do not charge up your credit cards until after closing, it too can negatively impact your debt to income ratio and loan eligibility.
Savings
Do not spend money you saved for closing even if you plan on replacing it prior to closing. Moving money around can cause some major issues during the underwriting process.
Deposits
Do not deposit any cash or large deposits into your bank account. In this case, cash isn’t king, your “money trail” needs to remain the same.
Bill Pay
Do not pay bills late during the mortgage process because it may lower your credit score and again affect your loan eligibility. Set up auto-payments or pay bills in advance to ensure they get paid on time and there are no issues.
Switching Banks
Do not change banks. It doesn’t sound like a big deal, but it can beome a huge problem. Once again your money trail matters.
Final Thoughts
In order to make it to the closing table you need to make sure you don’t make any of the mistakes mentioned above. If for some reason you need to make a large deposit or switch banks discuss the best route with your loan officer.
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Just because a buyer is pre-approved for a mortgage doesn't mean it's a done deal. Some buyers can easily blow up their loan by making these mistakes.Additional Resources
- Tips and Tricks to Buying a Home in a Seller’s Market by Petra Norris
- 10 Steps to Buying Your Home | Home Buying Checklist by Sharon Paxson
- 12 Mortgage Mistakes to Avoid when Buying a Home by Kyle Hiscock
- What NOT to do Before Buying a Home by Bill Gassett
- Tips for a Stress-Free Transaction by Jamohl DeWald
About the Author
The above real estate article “8 Ways to Blow Up your Financing when Buying a Home” was written by Michelle Gibson of Wellington Florida Real Estate. Specializing in residential real estate since 2001 Michelle Gibson is experienced in assisting buyers, sellers, landlords, tenant’s and would love to share her knowledge and expertise and guide you through the entire real estate process.
We service the following areas; Wellington, Lake Worth, Royal Palm Beach, Boynton Beach, West Palm Beach, Loxahatchee, Greenacres and more. If you are considering selling your home, we welcome the opportunity to work with you and list your home with a top Realtor in Wellington Florida
Michelle Gibson of the Hansen Real Estate Group Inc is a full-time REALTOR who has been specializing in Wellington Florida real estate since 2001. This veteran to the real estate industry has expertise in technology, marketing and social media.
Buyers with financing really need to know this and sab\ve any types of purchases until after they close on their new home.