Mistakes to Avoid When Closing Your Mortgage
Buying a home is an exciting, life-changing event. Sometimes it’s accompanied by other life events, like a wedding or arrival of a new baby. You just can’t wait to furnish and personalize your new space. You’ll be making multiple trips to the home improvement store and dropping LOTS of money on making your new home your own.
What some homebuyers forget or don’t even know is that your mortgage lender will continue to monitor your credit and bank account balances through closing day, even AFTER you close. When you’re in the process of closing on your home mortgage, please be sure to avoid these mistakes:
1. Don’t take on any new debt.
· Buying or leasing a new car
· Cosigning a loan for a friend or family member
· Opening a line of credit or credit card to purchase furniture or electronics for your new house
2. No new credit inquiries.
· Do not provide anyone with your SSN or allow anyone to pull your credit report.
3. No large banking transactions.
· Do not transfer large sums between accounts (even between checking/savings).
· Do not deposit or withdraw large amounts of cash (more than a thousand dollars).
4. Don’t change employers.
· Don’t give notice to your current employer that you plan to quit or leave at a future date.
· Don’t take any action that would cause you to be fired.
· Don’t accept any offers for new employment until the day after your loan closes.
5. Don’t change positions at your employer.
· If you switch from hourly to salary, or from base pay to commission pay, you may no longer be able to qualify for your loan. It is best to speak with your loan officer and discuss any possible changes, or postpone any changes until the day after your loan closes.
6. Avoid any major changes to your loan application.
· Don’t file for divorce before closing.
· Don’t sue anyone or file any legal complaints before closing.
· Don’t stop paying any of your monthly debt obligations before closing, including: alimony, child support, credit cards, rent, car loans, mortgage loans, home equity lines of credit, or any other debts.
To summarize, “Don’t Rock the Boat!” It’s best to postpone these types of activities until the next business day after your closing – two days after, to be safe. If you are unsure if something will impact your ability to close on your mortgage, you should consult with your mortgage broker or loan officer immediately. The best NJ mortgage brokers will be the most qualified to determine if any changes will count for or against you for your home mortgage loan application.