You’ve applied for a mortgage, now what?

buying a homeYou’re excited to purchase a new home and have been pre-approved by a reputable lender.  You may have even found your dream home and already submitted your mortgage application.   Now what?   Real estate agents and loan officers may forget to remind you of what NOT to do when you’re buying a home, but the experts at KCMblog posted some great reminders last month.

Don’t make any large purchases.   Maybe you’ve found a great deal on your next home and are excited to have some extra cash in your budget.   Until you’ve closed on your home, don’t run out and buy that new car or a wide screen tv for your family room.   Large purchases may change your monthly expenses and make you a more risky borrower.

Don’t co-sign loans for anyone else.  This seems like a no-brainer, but even if you aren’t going to be making the payments on the loan …. co-signing on another loan may cost you your mortgage.

Don’t inflate your bank account with cash.   Lenders need to know what your assets are and where they came from.   A mysterious deposit of $20,000 could raise some red flags. Many times a family member will help out with a downpayment.  However, there is a right way to handle a gift…and a wrong way.   Talk to your lender to be sure you are following their rules.

Don’t open any new lines of credit.  Just like co-signing on a friend’s loan, a new line of credit is a big no-no.   Keep this one in mind so that you don’t say “Yes!” when a sales clerk offers a 30% discount on your purchase just for applying for a department store credit card.  There will be plenty of time to shop after you are settled in your new home.

Don’t be a stranger…to your loan officer.   When in doubt run your financial plans or changes by him or her –  and you’ll be glad you did when your closing day is stress-free!