If you’re buying a house in Naperville and you’re trying to get a home loan, the time between when your offer is accepted and when you close is extremely important. That’s because there are a gazillion things that can go wrong to derail your home purchase.
As a buyer, your main responsibility is to make sure your loan gets approved. So, here are the top 10 things NOT to do if you’re trying to get financing.
Don’t Change Jobs
Changing jobs creates instability. Don’t switch employers. And definitely don’t quit or suddenly become self-employed
Don’t Buy Anything That’s Really Expensive
Buying really big ticket items like cars, trucks, boats, motorcycles, or even another home is a bad idea. Lenders don’t want to see you on the hook for more money that you’re going to owe.
Don’t Ring Up Your Charge Cards
If you need to fill up the space in your new home, don’t go shopping for it quite yet. You don’t want excessive and unusually high dollar amounts going onto your credit card. And definitely don’t let your payments get behind.
Don’t Buy Furniture
Similar to the item above, don’t go and buy furniture for your big empty house. That’s probably going to run you a few thousand bucks.
Don’t Spend Your Closing Money
When you sit down at the table to close on your new house, you’re probably going to owe money. That amount will likely be in the range of 2-5% of the purchase price of the home. Don’t go and spend that money on something else. You’ll need that amount of money liquid. You’re not going to be able to put your closing costs on your charge card.
Don’t Fake Out Your Lender
In other words, don’t lie. On your loan application, make it as accurate as possible. Your lender will dig up any dirt you’ve got hidden, so you might as well be truthful about it upfront.
Don’t Poke Around In Your Credit
You don’t want other people checking into your credit during this time. These inquires will show up on your report. So, don’t apply for any other loans or credit cards.
Don’t Drastically Change The Amounts In Your Bank Account
Keep your bank account amounts reasonable and normal. Don’t dump a bunch of money into or take a bunch out of your main account(s). It looks curious. At least don’t do this without checking with your lender first.
Don’t Change Banks
Even if you’re not getting a mortgage from the bank you usually do business with, don’t suddenly go and change banks. Keep your bank accounts and history as stable as possible.
Don’t Take Out Any New Loans or Co-Sign For Others
As mentioned earlier, don’t apply for any new loans. Just as importantly, also don’t co-sign for family or friends for their loans.
By following these guidelines, you’ll be helping to ensure that your lender has every reason to give you the loan that you’re asking for.