10 COMMANDMENTS that HOME BUYERS MUST FOLLOW!
I hope the following items seem like common sense. But with all of the excitement surrounding your pending home purchase, you may sometimes forget the do’s and don’ts when you are “under contract”. Please don’t be like some recent Buyers, who saw their home loan turned down, all because they bought new furniture a week before closing. They couldn’t resist the great “deal” they were getting at the store. Unfortunately, that purchase changed their debt-to-income ratio & the buyers no longer qualified to purchase the home !!!!!
LESSON? Once you get pre-approved for a loan and you are under contract, don’t do ANYTHING that might affect your credit !!!!
1. Thou shalt NOT change jobs, become self-employed or quit your job.
2. Thou shalt NOT buy a car, truck or van (or you may be living in it)!
3. Thou shalt NOT use credit cards excessively or let your accounts fall behind.
4. Thou shalt NOT spend the money you have set aside for closing.
5. Thou shalt NOT omit debts or liabilities from your loan application.
6. Thou shalt NOT buy furniture, appliances, etc.
7. Thou shalt NOT originate any inquiries into your credit.
8. Thou shalt NOT make large deposits without first checking with your loan officer.
9. Thou shalt NOT change bank accounts.
10. Thou shalt NOT co-sign a loan for anyone.
Once you are “under contract”, remember that your credit MUST NOT change or be affected in ANY WAY before signing the paperwork at closing and getting possession of your new home. Lenders will not only look into your credit when you first get pre-approved, they may check it a few more times while you are under contract. If you want to buy new furniture, new appliances, new car, or even change jobs, the time to do any of that is after you have closed on your home!!
IF YOU ARE NOT SURE IF SOMETHING COULD AFFECT YOUR CREDIT, DON'T GUESS! CONTACT YOUR LENDER!