Now that you have made the decision that you would like to buy a home there are some very important Do’s and Don’t that you need to keep in mind in order to prepare yourself for a smooth mortgage approval process. The slightest misstep could cause significant difficulties and delays on the closing of your home. Mortgage guidelines have some strict rules that need to be complied with in order to get you loan approved and it is you loan officer’s job to help guide you through the process and maneuver you around potential road blocks that could lead to a mortgage denial. These Do’s and Don’t are designed to maximize you FICO scores, minimize your debt-to-income ratios, and assure your funds to close are allowable.
First the Do’s:
- Do continue making your rent and credit payments on time
- Do keep working at your current employer.
- Do ask your loan officer before making any financial moves
Now the Don’ts:
- Don’t deposit and cash in you bank accounts!
- Don’t change jobs
- Don’t make any major purchases. (car, furniture, refrigerator, etc.)
- Don’t apply for or open and new credit. (even if you’re “preapproved”)
- Don’t transfer credit card balances or consolidate any debt
- Don’t pay charge offs or collections.(unless your loan officer says to do it)
- Don’t close any credit card accounts
- Don’t increase your credit card balances
- Don’t change bank accounts.
- Don’t pay off loans or credit cards (unless your loan officer says it’s ok)
- Don’t give your landlord notice to move without asking your loan officer first
These are very important rules to following in the before and during you home loan process. For more guidance to help you navigate to a fast and easy closing please call Dean Henderson at 661-726-9000.
Dean Henderson, CRMS
Financial Independence Mortgage