Four ways buyers can mess up loan approval
You’ve applied for a mortgage and now you are waiting to make it to the closing table. Don’t throw your loan approval into jeopardy by making one of these common mistakes:
1. Big ticket purchase: Avoid making major purchases – such as buying a new car or furniture -until after they close on the home. Big purchases could change a buyer’s debt-to-income ratio that the lender used to approve the buyer’s home loan and could throw the approval into jeopardy.
2. Opening new credit: Now isn’t the time to open up any new credit cards.
3. Missing any payments: Homebuyers need to be extra vigilant about paying all bills on time, even ones in dispute.
4. Cashing out: Avoid any transfers of large sums of money between bank accounts or making any undocumented deposits – both of which could send up red flags to a lender.