You’re buying a home after negotiating back and forth on a price.  The contract is signed!  What an exciting time!  Even though you may have been pre-approved for your mortgage, there are still things that can jeopardize that mortgage.  Here’s a few things you should not do while you are in the process of buying a home:

  • DO NOT change jobs until after buying the home.

Many mortgages are contingent on the length of time you have been with your employer.  If this can not be avoided, contact your loan officer BEFORE you accept a new job and put in your notice at your current job.

  • DO NOT apply for credit cards or make purchases on credit until AFTER buying the home

Mortgage companies will run your credit report when you first apply for pre-approval and then again right before you close on your home.  If there are negative changes to your credit score, you may no longer be eligible for that mortgage.  Even though you want new furniture before you move in, you really should wait until after you have closed on the sale of the home before you buy any.  The same goes for credit cards.  Every store and gas station has their own cards anymore and typically offer a significant discount on your first purchase.  But wait to apply for that credit card until you close on the sale of your new home.

  • DO NOT have your credit score checked until after buying the home

Every time your credit score & history is pulled your credit score is effected (negatively).  If your credit score is borderline on the threshold to be eligible for your mortgage, pulling your credit score just once could drop your score enough that you no longer qualify for your mortgage.

  • DO NOT co-sign for any families or friends.

Your credit score will be effected just like you were taking out the loan yourself.  Again, wait until after you close on the purchase of your new home.  Co-Signing Friend’s Mortgage Plunges Credit Score

  • DO NOT make large deposits into your bank account, except normal monthly income, without first notifying your loan officer BEFORE you make the deposit. 

You will need to turn in paycheck stubs, bank statements and possibly deposit receipts when you apply for your mortgage.  If there are any out of the ordinary deposits, it will raise a red flag in mortgage company’s underwriting department and crazy at it may sound, make you ineligible for your mortgage.

There are other factors that can delay the mortgage process as well which you can read about here. When you use a Farmer & Company Real Estate agent to help you in your home buying process, we are with you every step of the way.  We want to make the entire process from day 1 to closing day as easy on you as possible.  We are here to help you when you’re buying a home!  Feel free to give us a call when you’re ready to to start shopping for your new home!

Stewart Weisenberger, Broker/Owner