Getting pre-approval and finding the perfect home to buy is just the first few steps in the Home Buying Process. Your rock star agent could help you in a lot of steps but as a buyer, here are a few things that you might want to avoid while waiting for your transaction to close to avoid having you mortgage denied.
1. Moving Money Around
If your money is in your Savings account, now is not the time to think of investing it in stocks or moving it to other higher interest accounts. Mortgage companies looks into the liquidity of your assets, meaning how easily you can turn your assets into money. Savings would count as 100% but stocks and investment would only be accounted as 70%.
2. Getting new lines of Credit
Opening a new credit card or even requesting for a credit line increase at this time is a big No! Some credit inquiries are Ok and some are not, the negative ones might add up and it can hurt your application for Mortgage big time. So just to be sure avoid this kind of transaction when you’re waiting for a Sale to close.
3. Filing a Leave of Absence From Work
We know sometimes, accidents happen and you just can't avoid but file a leave from work. But if you can, try your best to avoid it. Lenders need to see that you'll be able to pay for the mortgage after your loan has been approved and missing work would mean missing a paycheck. Filing leave from work may delay your approval or worse it can get you denied.
4. Switching Jobs
If you are thinking of a career move, do not do it during this time. Aside from disrupting paper work process, switching jobs looks too risky for lenders. The longer your tenurity to a certain company the better. It reflects as you having a stable source of income. If switching jobs means a promotion in the same company, by all means do so. But if you are switching companies or your field of work better think about this twice.
5. Purchasing New Things for You Home
I know you are very excited to move into your new home but going on a Shopping spree at this time is not recommended. Incurring a new debt at this point in time could largely damage your application for mortgage. They could run reports hours before the closing and seeing a new debt would be a negatory on your end.