Monday, May 28, 2012

What Not To Do After Applying For A Mortgage

Do not take on any new debt.

The temptation is strong. There are so many big purchases people want to make in connection with a move: appliances window treatments, furniture etc. When you add to this the fact that, today, everyone offers terms and no money down- well, why not just do it? Answer because you will change what the mortgage industry calls your "debt -to -income ratios" (the relationship of your income to your debt).

Do not change jobs.

If at all possible try not to make a career move during the time between your mortgage application and the closing on the home you are purchasing. But, you ask, "What if it’s a BETTER job, for MORE money, in a DIFFRENT field?” Still try and wait until AFTER closing. One of the factors mortgage companies consider is length of present employment; they are partial to stability. At the least, changing jobs initiates the need for more paperwork, and may delay your closing.

Do not pack to soon.

Well, go ahead and pack your clothes and dishes. But do not pack your bank statements, tax returns, or other important paperwork. Most, especially do not pack your checkbook! More than one buyer has had closing delayed while their friend or relative hurried over with additional funds because the checkbook was in the moving van.

Do not lease a new car.

This should go under the general heading of “no new debt. It is highlighted here because for some strange reason, many buyers do run right out and lease a new car during the time between mortgage application and closing! As with any debt, this will change your " debt - to - income ratios" and may cause you not qualify for a mortgage.

In short, do nothing that negatively impacts your ability to qualify for a mortgage loan, or initiates a new round of paperwork. If you have any doubts about doing something that may affect your ability to qualify for your mortgage loan, please consult with you loan provider before you do it.

These suggestions are merely that- suggestions. No one is saying, flat out those bad things will necessarily follow if you do any of the above. They are offered as cautions. Many buyers seen to view the mortgage application procedure as a static action, a sabot shot of their financial lives at a given moment in time. It’s not. It's an on- going process that takes into account everything you do right up until the day of closing.