Congratulations! If you are reading this, it means you have been pre-approved for a mortgage! Now that you have completed the first step towards homeownership and are ready; there are a few simple things you should watch for and/or avoid during the home search & mortgage process, such as NOT making any drastic changes when it comes to your credit and employment. Below please find a description/example of what to avoid:
• Don't buy a new car or trade-up to a bigger lease.
• Don't quit your job to change industries or start a new company (If you do, will need to see 30 days’ worth of pay stubs from new job).
• Don't switch from a salaried job to a heavily-commissioned job as investor guidelines require a minimum 2 year history of commissions income in order to even consider over a 24 month average.
• Don't open new credit cards including furniture – doing so can affect your debt to income ratio used to qualify you in the first place.
• Don’t close accounts off either – Both actions can hurt your credit score (Instead of closing out credit accounts, just pay them off monthly like you typically would).
• Don't make random, undocumented deposits into your bank account – (large, undocumented deposits within the most recent two month bank statement period (used during mortgage application process) are not allowed and will not be counted towards available assets for the purchase of your home) Talk to me about this if necessary so we can properly document/paper trail.
• Do not dispute any credit accounts – If any are currently being disputed please work on removing them from dispute status ASAP.
• Do not co-sign on any credit applications until after you have closed on your home loan.
