{"id":382,"date":"2021-04-28T15:01:30","date_gmt":"2021-04-28T21:01:30","guid":{"rendered":"https:\/\/dougphelps.coloradohomerealty.com\/?p=382"},"modified":"2021-04-28T15:01:48","modified_gmt":"2021-04-28T21:01:48","slug":"7-things-not-to-do-after-you-are-pre-approved-for-a-home-loan","status":"publish","type":"post","link":"https:\/\/dougmovesyou.com\/7-things-not-to-do-after-you-are-pre-approved-for-a-home-loan\/","title":{"rendered":"7 Things NOT to DO after You are Pre-Approved for a Home Loan"},"content":{"rendered":"\n

Congratulations!<\/em> <\/p>\n\n\n\n

You decided you weren\u2019t going to waste time looking at houses you didn\u2019t know if you could afford. Instead, you visited with a lender or two and presented your financial case to buy the home of your dreams.<\/p>\n\n\n\n

And the lender says \u2013 \u201cAll is in order and we can pre-approve you. Go forth and find that new home!\u201d<\/p>\n\n\n\n

It\u2019s smooth sailing from here, right?  Probably.<\/p>\n\n\n\n

However, more than one buyer I have helped in my career has had the wind knocked out of their sails at some point in a real estate purchase by a few missteps.<\/p>\n\n\n\n

It is also best to steer clear of the following \u201cDo Not Do\u2019s\u201d until after closing.<\/p>\n\n\n\n

Do Not Take On Any New Debt<\/h2>\n\n\n\n

The temptation can be so strong. You are excited. There are so many big purchases you often want to make in connection with a home purchase: new appliances, window treatments, furniture, etc. This includes no new car too!<\/p>\n\n\n\n

When you add to this the fact that so many places these days offer easy terms and little or no money down scenarios \u2013 well, why not just do it?<\/p>\n\n\n\n

Answer: You should not take on any new debt once you are pre-approved for a home loan because you will change what the mortgage industry calls your debt-to-income (DTI) ratio, the relationship of your income to your debt.\u00a0 This could move you beyond the financing threshold that preapproved you. And this could derail the deal.<\/p>\n\n\n\n

Do Not Let Anybody Run Your Credit<\/h2>\n\n\n\n

Closely following the first thing, avoid activity that could involve getting your credit checked. Like signing up for a new credit card or co-signing for a family member or any shopping in the furniture store.<\/p>\n\n\n\n

Why?<\/p>\n\n\n\n

Because each time your credit is pulled it is reported by the credit agencies, it is detrimental to your credit score. You want to keep your score as high as possible during this time.<\/p>\n\n\n\n

BTW, an interesting side note: Applying to more than one mortgage lender does not negatively impact your credit score.<\/p>\n\n\n\n

Do Not Pay On Any \u201cNegative\u201d Items On Your Credit Report<\/h2>\n\n\n\n

This temptation can be strong. While commendable, doing so can bring the items that perhaps have been in the long-term past to current and up front in your credit report. And lower your score. Do not do anything unless your lender advises you to. I say again: Talk to your lender first.<\/p>\n\n\n\n

Do Not Share Any Plans You Have For The Home Until After<\/em> You Move In<\/h2>\n\n\n\n

Thinking about remodeling the kitchen, finishing the basement, putting a gazebo or putting green in the back yard? Keep these plans to yourself. The reason is similar to the above \u2013 you could cause a lender to recalculate your DTI.<\/p>\n\n\n\n

Do Not Change Jobs<\/h2>\n\n\n\n

Have an opportunity to make a career move? Doing so during the time between your mortgage application and the closing on the home can be problematic.<\/p>\n\n\n\n

But \u2026 you ask, \u201cWhat if it\u2019s a BETTER job and for MORE money \u2026 and in my SAME company?\u201d This is likely ok and helps your DTI ratio.<\/p>\n\n\n\n

However, if the last phrase is instead \u201c\u2026 and in a DIFFERENT field?\u201d Not good.<\/p>\n\n\n\n

Stay strong and wait until after closing. One of the factors mortgage lenders consider is length of present employment \u2013 and they are very partial to stability in the same organization and especially in the same field of work.<\/p>\n\n\n\n

Do Not Pack Too Soon<\/h2>\n\n\n\n

Well, go ahead and pack your clothes and dishes.<\/p>\n\n\n\n

But do not pack your bank statements, tax returns, or other important paperwork. More than one buyer has had closing delayed because additional paperwork was required right before closing. Pack these last into the moving van.<\/p>\n\n\n\n

Important Final Note<\/h2>\n\n\n\n

The lender could recheck your credit as close as 24 hours before closing, so do not think you are \u201cin the clear\u201d when the lender says \u201ccleared to close\u201d a few days prior to closing.<\/p>\n\n\n\n

The thing to remember is all of this: Get through closing and into the house first.<\/p>\n","protected":false},"excerpt":{"rendered":"

Avoid a headache and read this post to avoid 7 common pitfalls homebuyers make after getting pre-approved for their home loan. <\/p>\n","protected":false},"author":2,"featured_media":5177,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[1869,275,1894,15],"acf":[],"_links":{"self":[{"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/posts\/382"}],"collection":[{"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/comments?post=382"}],"version-history":[{"count":0,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/posts\/382\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/media\/5177"}],"wp:attachment":[{"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/media?parent=382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/categories?post=382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/tags?post=382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}