When applying for a home loan you must know a few do’s and don’ts. There are certain moves and tactics that can harm your credit, thus making it impossible for you to get a home loan. Below are several things to avoid after home loan approval or after applying for a home loan and waiting for the result.
• Avoid applying for a new credit
This is a very important thing to consider for this moment. After you have applied for a loan, it is not considerable to look for another lender or perhaps mortgage broker out there. You should not also apply for any kinds of personal loans and credit cards. Any moves today can put you into a bad credit showing that you are putting too much money at a time.
Because getting into a new debt can make the lender suspicious about your financial standing. It is recommended to stay away from any new credit transactions until you have received your loan.
• Avoid using credit cards in buying luxurious items
Some small fees that are automatically deducted on your credit card such as subscriptions or perhaps dues are just fine. However, avoid making big purchases after applying a home loan. Big purchases like luxury items can definitely change the debt-to-income-ratio and can affect the interest rate. One example of big purchase includes buying a car or perhaps a truck. So, if you want your loan to be approved immediately, avoid buying new cars.
• Avoid major life changes
There are things that can affect a home loan like major life changes such as getting pregnant or fired from work. Also, avoid changing jobs, getting married and moving to some other places while getting a home loan. Mortgage companies will verify your whereabouts and employment. So, keep things stable for now.
• Avoid negligence of any payments
This is not the right time to miss any payments. You should pay your bills on time. Your existing loans must be kept current. All receipts from any payments and deposits must be kept within the last 3 months. Also, you must avoid high loan balances because this can have a great impact on your credit.
• Avoid transferring of assets from one bank to another
As the lender still reviewing your loan application, you are requested to give bank statements for the last 2 to 3 months on your savings account, checking accounts, and other funds. So, it is better not to transfer any of your assets to any other banks.
If there are transfer of assets from a bank to another, the transfer of signifies new deposits and can complicate things especially on the processing of the loan. It is very difficult for the mortgage company to document the required funds if you have transferred your money to any bank accounts.
By educating oneself in the financing process, and following the advice of the lending company, the process of approval will run smoothly.