You’ve assembled your documentation, filled out the mortgage application and received approval to proceed with your purchase. It’s time to celebrate, right?
Not quite. Lenders recheck credit information right before closing, and certain behaviors might cause them to question your creditworthiness. Avoid these four mistakes to keep that from happening:
Getting a new job
Lenders like to see consistency. A new employer could mean delays due to employment and salary verifications. That said, if a huge career opportunity presents itself, talk to your lender.
Buying a car
You probably know that your debt-to-income ratio is important when you’re being considered for a loan. Adding to your debt could move that ratio to a level that your lender finds unacceptable.
Opening or closing credit accounts
Like taking on new debt, the mere act of opening a new credit account can affect your mortgage approval. The credit inquiry may impact your credit score by a few points, and your lender might wonder just how much you plan to spend with that new account. Even closing a credit account, which seems a positive step, could lower your credit score, because your overall available credit has been reduced.
Forgetting to pay the electric bill
If this seems unlikely, remember that instead of enjoying your normal household routine, you’re working out how to move your family and all your worldly goods. Now which box has the checkbook?
Part of the mortgage process is a last check to ensure you can afford the loan. Neither you nor your lender wants the payments to be a struggle, so don’t give your lender any reason to doubt your creditworthiness.