Never Do This When You're Buying a Home

Getting approved for a mortgage is one of the most important parts of buying a home. But a lot of buyers don’t realize that your approval isn’t final until closing. Your lender can recheck your credit and income right up until the end.

That means what you do between your accepted offer and closing day matters. Here’s what not to do.

1. Don’t make any big purchases

New furniture, a new truck, a boat: hold off. Large purchases can drain the savings you need for closing costs, and they can raise red flags with your lender.

2. Don’t finance anything

“Buy now, pay later” deals, new car loans, financed appliances. Any new debt changes your debt-to-income ratio, which is a big part of what you qualify for. Even a small new monthly payment can shrink your approval, or cancel it.

3. Stay away from your credit cards

Running up balances or opening new cards can lower your credit score and increase your debt load. Keep using credit normally and pay on time, but don’t take on anything new.

4. For the love of God, don’t quit your job

Lenders approve you based on your income and employment. Changing jobs, going self-employed, or quitting before closing can put your mortgage at serious risk. If a job change is unavoidable, talk to your mortgage broker before you make the move.

The bottom line

From pre-approval to closing day, keep your financial life as boring as possible. Once you have your keys, you can shop for that new couch.

Buying your first home?

The Right Choice team walks you through every step, including what to avoid along the way.

Call 289-276-1716 or start your home search.