Your Mortgage Has Been Approved. Now Keep it That Way.

Not so fast.

Even though you’ve been approved, you still need to keep your financial situation in order. It is not uncommon for lenders to pull a borrower’s credit rating and history a final time before closing on a home.

Stay focused on all of the factors that were important for pre-approval. Here are a few critical pieces of advice to avoid any issues at closing.

Avoid Major Purchases

Now that you’re ready to close on your home, you may be looking ahead at the next big item. Perhaps you want some expensive furniture for your home, or a new car.

Purchases like these can change the equation for the lender and make you seem like more of a risk. Wait to buy these items until at least 2 weeks after you close on the house.

Don’t Miss Payments

You’ve likely spent a lot of time making sure that your credit rating is good and that you haven’t missed any payments leading up to your pre-approval.

If the lender chooses to pull your credit again before the paperwork is signed and finds that you have missed or late payments, they could change their minds and deny your loan.

Stay Away From New Credit

Opening up new credit cards or accounts will raise your available credit. To a lender, this is potential debt that you could owe to someone else, increasing the likelihood that you will miss a payment to them.

Even if you find a great deal on a new credit card, wait until you have the keys before you open an account.

Stop Moving Money Around

Large cash transactions—including deposits, withdrawals, or transfers — raise red flags for lenders.

It may appear that you have other debts that they didn’t see when they pulled your credit. These big transactions make you look like a risky borrower.

Try to organize your finances so that you don’t need to perform these types of cash transactions until everything has been approved.

Hold Off on the Career Change

Starting a new job while you’re getting ready to buy a home can be stressful, but that’s not the only reason you should avoid a career change during this time period.

Job security and salary are two important factors when determining whether or not a mortgage will be approved. If you don’t have a stable job, the lender may worry that your overall financial situation isn’t stable either.

Again, it might be worth weathering the work storm a bit longer, until after the paperwork is signed, to get your dream home.

If you’d like to learn more about mortgages and the home-buying process, feel free to reach out to a mortgage specialist at a First Bank branch near you.