5 Buyer Don’ts When Awaiting Loan Approval

As a buyer, there are certain actions you’ll be advised to take during the loan process to ensure a smooth progression toward closing, but that topic is for another time.

Today I’ll reveal what not to do while obtaining loan approval. Here are the five buyer don’ts:

1. Don’t quit your job. Your boss might be a jerk and you might be ready to pursue greener pastures, but now’s not the time to disrupt your employment situation. Avoid quitting, relocating, or changing positions while the loan process is in progress. The name of the game in all of this is stability.

2. Don’t increase your credit card balance. I’m sure you’re eager to buy some new furniture and appliances to go along with your new house, but, again, not so fast! Ramping up your credit card debt before the loan is finalized can impact your credit score or debt-to-credit ratios, and that’s not something you want to mess with.

3. Don’t buy or lease a new car. You’ve probably caught on to the theme by now: Wait until you’ve secured your home loan to do this! Most lenders will do a soft pull, and it’s best to not do anything that could alter your score and get the attention of your lender.

4. Don’t use the money set aside for your down payment. This seems obvious enough, but it’s certainly worth reiterating.

5. Don’t omit any of your liabilities. If you have a private loan, owe child support payments, or are bound to some other form of liability, be forthcoming about it with your loan officer. Withholding this information will just create problems for you later on.

There you have it! Avoiding these things as you move through the loan process is a must. If you have any questions about today’s topic or you’re looking to buy, sell, or invest in South Jersey or Philadelphia, please don’t hesitate to let me know. I’d be happy to help!