So, you finally made the big step, you put in an offer on a home and are ready to enter the rank of Homeowner! Then your Lender who Pre-Approved you calls and says, we have a problem! What could have happened? Here are few of the biggest gaffes we have seen over the years to be aware of.
Closing unused accounts. Do not close any of your credit accounts. Where this may seem like a great idea, trade-line age is a hug part of your credit score.
Even if it pays more, don’t change jobs unless you have it approved with the lender first. There is enough on this topic for 20 articles. Continuity of Income, overtime, bonuses and type of industry are all things I have seen cause an issue.
Do not pay off any collections or make any payments on them. These will update as new the minute you do, so talk to your Lender before you do anything.
Keep a lid on the spending! Your loan was approved with the assets you have, even if you don’t need them all for down payment, they count towards your reserves. The more assets the better, but don’t move money around, every large deposit or withdrawal will have to be explained and if it came from another account you will need all those statements as well.
Applying for new credit. Never, ever take out any new debts while in the process. This is the single biggest mistake people make even if it is zero interest it will affect your loan.
Every situation is different, Call or email Chris or Bob if you would like a personalized tips and tricks to improve your score with little effort and keep those questions coming!
Chris Conlon firstname.lastname@example.org 704-609-5017
Bob Parm email@example.com 704-778-2603