Congratulations, you have been pre-approved for a mortgage and have a deal on your dream home. You’ve handed in all of your documentation to your mortgage lender, and everything appears to be on track.
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However, once you’ve found your dream home and applied for a mortgage, keep a few things in mind before closing. It’s wonderful to start planning your move and decorating your new home, but before you make any significant purchases, move your money around, or make any major life changes, talk to your lender—someone who is trained to explain how your financial decisions may influence your home purchase loan in Arizona.
After applying for a mortgage, here’s what you shouldn’t do. They’re all essential to understanding—or at the absolute least, helpful reminders—for the process.
Don’t Make Large Purchases, Such As A New Car or Home Furniture
More debt means new duties monthly. New responsibilities entail the acquisition of new skills. People with new debt have a higher debt-to-income ratio. Because higher ratios suggest riskier loans, qualified borrowers may be turned down for a mortgage.
Don’t Co-Sign Other People’s Loans
If you co-sign, you are obligated. This responsibility is also linked to higher debt-to-income ratios. The payments will be counted against you by your lender. You won’t be the one manufacturing them, even if you pledge.
Don’t Put Cash In Your Bank Until If You Haven’t Spoke With Your Bank Or Lender
Cash is tough to track, and lenders want to know where your money originated. Speak with your mortgage officer about how to properly document your transactions before you deposit any money into your accounts.
Don’t Change Bank Accounts
Your assets must be able to be located and tracked by lenders. This process becomes a lot easier when your accounts are consistent. Before transferring any money, speak with your loan officer.
Don’t Submit An Application For New Credit
It doesn’t matter if it’s a new credit card or a new car. If companies run your credit record through multiple financial channels, it will damage your FICO® score (mortgage, credit card, auto, etc.). Lower credit scores can impact your interest rate and, in some situations, your ability to get approved.
Don’t Close Your Credit Accounts
Many home buyers believe that having less credit available lowers their risk and improves their chances of being approved. When you buy a home in Arizona, this is not the case. In fact, your credit history (rather than just your payment history) and overall credit usage as a percentage of available credit are both essential elements in determining your credit score. Both of these scoring criteria suffer when accounts are closed.
Final Note
Any variations in your income, assets, or credit should be evaluated and addressed so that your home loan can continue to be approved. Inform your lender of any recent changes in your work or employment status. It’s advisable to fully disclose and discuss your financial goals with your loan officer before you do anything else.
Even seemingly insignificant activities might impact your chances of obtaining a mortgage loan authorized. Call personal mortgage experts now if you have any queries about the dos and don’ts of mortgage loans in Arizona.
Beautiful communities, sunny weather, good schools, and a thriving job market make this a great place to live. Living in Tempe, Arizona, provides you with numerous advantages and access to the Phoenix metropolitan area. Mortgages by Misty can help you find the perfect home purchase loan in Arizona for you if you’re ready to move into your Tempe property with a flexible mortgage. Contact us today at (480) 618-5358 to learn more.
Do you know how much home you can afford?
Most people don’t... Find out in 10 minutes.
Today's Mortgage Rates
