Many first time buyers make the mistake of believing once they’re pre-approved for a mortgage, finalizing the transaction at the closing table is a done deal. But actually, the time between pre-approval and closing is a critical time for borrowers and they must make sure their financial picture remains unchanged.
Getting pre-approved is an important part of the mortgage process, however it is not a guarantee of the loan. Your lender will review your credit and finances again before closing. Any financial decisions or changes you make in the interim period could jeopardize your loan eligibility.
Here are 10 mistakes to avoid when buying a new home.
1. Do not omit any prior debts or liabilities on your loan application – this will only come back to haunt you during the purchase process.
2. Do not buy or lease a new car.
3. Do not change your job status or become self employed.
4. It might be tempting….but don’t make big purchases like appliances or furniture for the new house.
5. Don’t start running up excess credit card purchases, and don’t let your current accounts fall into debt.
6. Do not make large deposits or withdraws from your bank accounts without checking with your lender first.
7. Absolutely no switching bank accounts.
8. Avoid making new inquiries into new lines of credit until after the purchase goes through.
9. Do not co-sign for anyone or pick up any new liabilities.
10. Don’t spend any of the money you put aside for your down payment!
Once you’re pre-approved you’ve already cleared one of the trickiest hurdles buyers have to face. Take a moment to congratulate yourself for how hard you worked to get here. Then it’s time to wait patiently, avoid the mistakes above and maintain your financial status as much as possible.
Contact Michigan Lender, Julie Krumholz
Buying a home on your own is no easy task, especially if you are a first-time buyer. Consult with an experienced Michigan mortgage lender to help you navigate through every step of the process.
Julie Krumholz has over 30 years experience in the mortgage industry. She has worked in underwriting, quality control, processing, closing and loan origination. Her comprehensive background allows her to advise clients with unusual expertise.
Contact Julie Krumholz Today: 586-382-5482
