Unfortunately many people make simple mistakes while in the process of finalizing a loan. Your loan is not final until it has been recorded and funded. Make sure that you do not do anything that will affect your credit such as buying something that would require a loan or co-signing on a loan. During the loan approval process your credit is usually pulled upon application, 60 to 90 days before closing, and again 10 days before the loan is finalized. Needless to say, when you are applying for your mortgage, plan on not making any big purchases for a few months to ensure that your credit isn’t affected. Not only is opening new lines of credit detrimental for you while you are in the process of finalizing your loan, but so is making any large purchases on existing lines of credit.
You need to ensure you sustain your stability, which includes not quitting or changing jobs. While it is understandable that sometimes this is inevitable, employee verification is standard when applying for a loan. A career change in the middle of your loan being processed means adjustments in income, which can lead to revisions for the approved amount and sometimes even denial for a loan for which you have been pre-approved.
Don’t spend any money that you included while budgeting for your down payment from your savings. It’s always important to have an emergency fund. You never know what surprise expenses can come up especially while purchasing a home.
Making large deposits without creating a paper trail can indicate a higher debt-to-income ratio and newly borrowed money. A large deposit is usually considered to be $1,000 or more. For some people, this could indicate that they may be less likely to take on more debt. When you are ready to purchase a home, minimizing transfers between your accounts will be beneficial to you. It is also advised to call your bank(s) to ensure all your accounts have the same statement date. This will make tracking everything a lot easier when everything is aligned.