6 Key Things to Avoid after applying for a Mortgage
6 Key Things to Avoid after applying for a Mortgage.
Here are six key things you should avoid after applying for a mortgage.
Number 1, do not deposit a large cash amount in your bank account without speaking to your lender because cash is not easily traceable. When you're buying a property, your lender wants to trace all the deposits in your bank account. So this is very important.
Number 2, don't make any large purchases on your credit. Something like car or furniture because one of the things in the credits is very important is the debt to income ratio. Now, when you buy something on the credit card and that payment, the new payment, when the lender calculates you may not qualify for that amount you qualified before. So, do not purchase a large amount of stuff, car or furniture on your credit.
Number 3 is don't co-sign for someone else during this process because even though someone wants to buy, say, a car or something and then they want you to be a cosigner, you are equally liable for the payment. That payment will show up on your credit report. So, do not co-sign for anyone.
Number 4, don't change the bank account because unless you close the property, the lender is going to keep on asking for the new bank statement. And if you change the bank account, then you have to give all those documents from the older bank and new bank. It's a hassle, keep the same bank until the day you close the property.
Don't apply for a new credit card or something on the credit. That's number 5. Whenever you apply for a new credit card, it is a hard pull. Your credit score can drop a little bit and that can affect your mortgage qualification.
And number 6, do not close a credit account or an account on your credit because when you close an account, it does affect your credit. Your credit score can go down. So be very careful, even though maybe you are not using a credit card or credit line and you say, let's close it. It does not help immediately, your score may drop and you'll be in trouble for the qualification.
So these are the six things you have to be mindful about when you are in the process of purchasing a home. Hopefully this information will help you and guide you to get the right mortgage and close smoothly on your property. Give me a call if you have any questions. My name is Shawn Bhakta from RE/MAX Presidential. Glad to help.