Before You Close: What Not to Do After Your Pre-Approval
By Mark Jost, NMLS #150914 · Published
Getting pre-approved feels great. But your loan is not done yet. Your lender can check your credit again just before you close. So the weeks between pre-approval and closing matter. Here is the list I give my buyers.
Do not apply for new credit
That means no new credit cards, no car loan, and no store card to save money on a couch. The Consumer Financial Protection Bureau says a new credit application causes an extra inquiry that can lower your scores. It also says to avoid applying for other credit during the mortgage process. A new account can also add a new monthly bill, and that changes what you can afford.
Do not make big purchases on credit
I know you want to buy furniture for the new house. Please wait. The CFPB advises against large purchases on your credit cards before you buy a home. Buy the furniture after closing day.
Talk to me before you change jobs
A new job is not always a problem. But your lender looks at your work and income, so I need to know first. Call me before you accept a new job, change how you are paid, or switch to self-employment. Then we can plan it the right way.
Be careful with big money moves
Do not move large amounts of money around without telling me. If a family member wants to give you money for your down payment, or you plan a big deposit or withdrawal, call me first. Lenders may ask you to explain where money came from, so keep your records.
Keep paying every bill on time
Pay all your bills as you always do. A late payment can hurt your credit before closing.
Do not co-sign for someone else
Co-signing can put a new debt in your name. Even if someone else plans to pay it, it may count against you.
Answer requests fast
Your lender may ask for a pay stub, a bank statement, or a signed form. Send it quickly. Quick answers keep your closing date on track.
The easy rule
Keep your life steady until you have the keys. If something changes, or you are not sure, call me before you act. A short call can save a long delay.
If you are buying in Nashville, Franklin, Brentwood, or anywhere in Middle Tennessee, I am glad to walk through your plan with you.
Sources
- CFPB: Get your money situation in order
- CFPB: What happens when a mortgage lender checks my credit?
- CFPB: When will my lender run or obtain a copy of my credit report?
This article is general information, not a loan offer or legal advice. Every loan depends on credit, income, and property review. Mark Jost, NMLS #150914. Heathrow Mortgage, Company NMLS #1849599. Equal Housing Opportunity.