You were approved for a mortgage. You put in an offer on your dream home, and it was accepted. You’re just weeks (or days!) away from closing.
You’re in the clear, right?
Wrong. Until you’ve closed on your mortgage, there are a number of financial mistakes you can make that could cost you your home.
So what, exactly, are those mistakes? A recent article from realtor.com outlined the money missteps that could put your mortgage in jeopardy, including:
- Taking a leave of absence from work. Your job is a key element lenders use to determine whether you have the ability to pay back your loan. And, as such, it’s important to stay at that job until you close on your home. Why? Because if you take a leave of absence — even if it’s temporary — it could make the lender question your ability to cover your mortgage payments, which could cause them to delay or deny your loan. So, if you can, avoid taking a leave of absence from work. If it’s unavoidable, just be prepared that it could impact your mortgage process.
- Making big purchases. When you buy a new home, you may also be tempted to buy all the things you need for said home, like new furniture and appliances. But running up those charges on your credit card could change your debt-to-income ratio, and if they decide your new purchases put you into too much debt for their liking, your lender may change your interest rate, or rescind the mortgage offer completely. So, if you’re buying a home, wait to make any big-ticket items until after closing.
- Applying for new lines of credit. Applying for too many new lines of credit can make lenders think you’re irresponsible with money or planning to max out your current credit limits, which could impact your ability to close on your home. Instead, wait until after you close to apply for any new credit cards.
