During waiting for the loan being approved, people thought they already submitted their financial statements , their w-2 or pay-stub, then the lender will not check them any more. But the truth is that lenders are always watching your financial change until your loans are closed. There are 4 mistakes people easily to make when they applied for a mortgage.
- Move your money around. while you wait to close, don’t transfer your money to other accounts back and forth. For example, some people think that putting cash on the account is a waste of money, they may transfer to stock accounts to get short profits. But stock market changes quickly, you can’t guarantee you will win . If you lost, then you will lower your net value and reduce the cash you can bring to closing. Plus, liquidating stocks take time , you probably will short of cash at your closing day.
- Switching jobs. A change in employment even with higher salary makes you seem risky to mortgage lender and will delay your approval
- Apply for a new credit. A new credit application may not only lower your credit score but also suggest that you are not wise with your money.
- Running up new debts. Even though your loan is near to close, you shouldn’t buy too much on credit to increase your debt dramatically. Beware lenders pull credit report within hours of a closing. Too high debt ratio could ruin your loan.