Stay the Course Until Closing
Enhancing your future home with new furnishings is an exciting prospect — but it's crucial to tread carefully before your loan closes to ensure a seamless transaction. Many buyers don't realize that certain actions between application and closing can jeopardize their loan approval at the last minute.
Here are the most important things to avoid during the mortgage process:
5 Things to Avoid Before Closing
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Hold Off on Big Purchases
While it's tempting to splurge on furniture or appliances for your new space, refrain from making significant purchases until after closing. Large buys can alter your credit profile and potentially jeopardize your loan approval.
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Avoid Opening New Debt
Opening new credit accounts can disrupt your loan approval process. Always consult your loan originator before taking on any new debt to prevent delays or complications.
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Maintain Job Stability
Lenders value a steady employment history. Avoid changing jobs during the loan approval process, as it may raise concerns and impact your application status.
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Keep Your Finances Stable
Avoid transferring large funds between accounts or switching banks before closing. Lenders need clear documentation of your financial stability, and any changes could complicate the process.
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Avoid Large Deposits
Large deposits and transfers can trigger requests for additional documentation to source where the funds came from. As a general rule, any deposit greater than 50% of your total gross monthly income will need to be sourced and documented.
When in Doubt — Ask! If you're ever unsure whether something could affect your loan, reach out to your loan originator before taking action. It's always better to ask first.
Why This Matters
Adhering to these guidelines can significantly contribute to a smooth and successful closing process. By refraining from big purchases, maintaining stability in your employment and finances, and avoiding new debt, you're protecting your home buying journey all the way to the finish line.
At Contemporary Mortgage Services, Inc., we're dedicated to ensuring your transaction goes seamlessly. Trust us to navigate you through every step with expertise and personalized attention.