Process: Harry Bing Gives Points on Avoiding Losing Approval
Let's talk about what to do and what not to do during your home loan process. Knowing that your mortgage approval can be fragile, here are some things you should absolutely NOT DO, NOT DO while your home loan is in process. It may have something to do with having your loan approved and having your loan by the bank being turned down.
1. Don't buy a new car or trade them for a bigger lease, I mean even if a car's a cash purchase, consult with your lender.
2. Don't quit your job to change industries. You're working as a CNA, don't become a car salesman on commission.
3. Don't switch from salary jobs to heavily commission jobs.
4. Don't transfer large sums of money between bank accounts,
5. Don't forget to pay your bills including credit cards on time, even if they are in dispute, pay them on time.
6. Don't open up a new credit card without the lender's permission.
7. Don't let any credit cards go over 30% of the limit, this will quickly pull your score down and we don't want that happening at all.
8. Don't accept cash, a cash gift, without filing the proper paperwork. And your lender can give that to you.
9. Don't make random, undocumented deposits onto your bank account.
10. Don't co-sign anything.
11. Don't stop paying your rent just because you have loan approval.
12. Don't increase your credit card reward and debt.
13. Don't have any overdraft, insufficient funds.
14. Beware of taking a temporary leave of absence, they can kill your approval.
15. Avoid bank deposits of large cash, again, the bank wants to see the source of the money, again, live out the cash and let your money just stand in the bank account.
16. Avoid all payday advances, etc.
17. Don't use a credit card to buy things for your new home, no excessive spending, don't go out buying furniture for the big room and then living room and then family room before you close.
18. Do not amend your tax returns, without first, speaking to your lender.