Things You Should Avoid After Applying For a Home Loan

Dated: August 7 2020

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Things You Should Avoid After Applying For a Home Loan ...

                                                

You’ve done everything right so far; you’ve found a great lender, received a pre- approval and submit;ed your loan package for final approval. Now you’re done, right? Wrong. until you close on your new loan, it’s more important than ever to keep your credit steady; most lenders perform one last credit check right before they fund and a decline in your score can mean the difference between getting the home and losing the loan.

Things You Should Never do A0er Applying for a Loan

  • Don’tChangeJobs–WhilesomeDmesit’sunavoidable, especially if the new job is the reason for the move, but any change in income or job status creates risk and should be avoided if possible.

  • Don’tMakeanyLargePurchases–AstempDngasitmaybetogoshopping for new furniture, wait until after you close to make any large purchases. This applies to furniture, appliances, and even new cars. New loans could change your debt to income ratio and cause you to no longer qualify for the loan.

  • Don’tApplyforNewCredit–EveryDmesomeonerunsyourcreditreport, your score is affected. This is not the time to search for a new credit card.

  • Don’t CloseAnyCreditAccounts–ItmightseemcounterintuiDve, but closing or paying off loans or credit cards might actually bring your FICO score down. The length of Dme you’ve had your credit open is a positive effect on credit scores.

    The bottom line is to avoid doing anything to your credit. If you’re unsure of what you can or cannot do, ask you lender; they can guide you in the right direction and make sure you close on your new loan. 

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Vickie Pizzarelli

Residential Real Estate Broker licensed in Rhode Island & Massachusetts servicing all of Rhode Island and South Eastern Massachusetts. With over 31 years of experience previously licensed in NYC curre....

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