Attention Home Buyers! Do not expect your loan to close smoothly if you
“Can they do that? I have my approval in writing?” you may ask.
Absolutely. The lender can withdraw your loan approval — even after giving you a written commitment — if they perceive that you have become a greater credit risk.
Seven Mistakes to Avoid
1) Don’t apply for new credit of any kind.
2) Don’t pay off collections or charge-offs during the loan process.
3) Don’t close credit accounts, not even old ones you haven’t used in a long time.
4) Don’t increase the balance on your credit cards, which also means don’t buy furniture, appliances, or anything else for your upcoming new home until after closing.
5) Don’t consolidate your debt onto one or two cards.
6) Don’t co-sign on a loan for anyone.
7) Don’t change your name during the loan process.
If you need clarification about any of the seven, let me know.