You found your dream home and your offer was accepted. Congratulations! Now, don’t mess up your home loan! You’ve got about 30 to 45 days until settlement and if you do the following things you could just lose that dream home by losing your mortgage approval.
First, don’t go nuts buying things for the new house
Sure, you may just need new furniture for the bedroom or living room, but buying it now while your credit is being scrutinized by your lender will set off red flags for them. It doesn’t matter if you use your savings. Wait until after settlement to make those purchases.
Another don’t: applying for a new credit card
Doing that will change your credit score and also affect your debt to loan ratio. You might not actually be in debt but with the credit card you have the ability to get into thousands of dollars in debt. Your lender has requirements for mortgage approval that your debt be within a certain percentage of your income. Mess with that ratio and they will pull their approval.
That also means no big credit purchases like a new car
For the same reasons as a new credit card, buying a car before your mortgage settles is a really bad idea. If a situation comes up where you MUST have a new car, say yours dies or is totaled in an accident, see if you can temporarily borrow one or talk to your lender.
Now is a bad time to change jobs as well
Even if you are moving to a new state far away from your current job, stay put until you settle. Don’t quit a job and start a new one. It makes your lender see you as a risk. If you get an offer for a better job with a higher salary, great! Do one of two things. See if you can start the new job after settlement or talk to your lender and explain the particulars of the new job and the fact that is offers a better salary.
Lastly, now is a really bad time to start missing payments on anything!
Make them on time and in full. Your mortgage lender is monitoring your credit report and bank accounts looking for just these kinds of things. Stay a good credit risk.