buy or lease an auto. The lender looks carefully at the debt-to-income
ratio and a large payment such as a car lease or loan can greatly impact
those ratios and prevent you from qualifying. Also, each time an auto
dealer or car insurance company checks your credit, your credit rating
will be reduced.
be tempted by low introductory rates or store discounts offered with
new credit cards. Each time a creditor opens an account for you they
check your credit. Each time they check your credit, an inquiry is created
in your credit file, which reduces your credit rating. And each new
account that is opened will further reduce your credit rating because
you are taking on more debt.
move assets from One bank to another. These show up as new accounts
or large deposits and complicate the application process, as you must
then document the source of funds for each new account. It is better
to let the lender verify each account before you move the funds around.
change jobs Even if you earned bonuses or commissions in your previous
job, the lender may not be able to use this income in a new job until
you have a year or two of earnings history behind you, which could seriously
impact your ability to qualify for a loan.
buy new furniture or major appliances for the "new house". If the new
purchase increases your debt load, it can disqualify you from the loan
or deplete your funds to close. And don't forget, each time someone
checks your credit or you open a new account, your credit rating will
attempt to consolidate bills before speaking to your lender. The lender
can advise you if this needs to be done.
pack or ship information that may be needed for the loan application.
Important paperwork such as w-2's, divorce decrees, and tax returns
should not be sent with your household goods. Duplicate copies can take
throw away paystubs and bank statements. Save everything until after
your loan closes. You will need to produce one to two months' worth
of documentation when you apply for your loan, and you may need to provide
additional paperwork prior to closing. If you have done any of these,
contact your lender. Even if you have been pre-qualified. They can help
you re-qualify if necessary and advise you of your options.