Three Things You Can’t Do While Buying a Home

If you make one of these mistakes during the home buying process, your approval can be turned into a denial.

Even if you are fully approved and have signed documents, you can be denied — even one minute before closing. The lender has the right to stop the loan from funding if they believe the risk of lending to you has increased.

Here are Three Things You Cannot Do Without Jeopardizing Your Financing

  1. You cannot quit your job or go on furlough. This will turn your approval into a denial
  2. You cannot open a new credit account without possible jeopardizing your approval. Opening a new account increases your debt ratio and possibly lowers your credit score. Yes, they keep a watch on your credit throughout the process.
  3. You cannot buy a car, truck, SUV, or other high ticket item without jeopardizing your approval. Wait until after closing to consider purchasing a vehicle.

Protect your financing during the process. Speak with your loan officer BEFORE making any financial moves or changes in employment.

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4 thoughts on “Three Things You Can’t Do While Buying a Home

  1. Hello Carolyn , I have your books how do get access to the dispute letters

    On Thu, Apr 8, 2021 at 3:31 PM Ask Carolyn Warren wrote:

    > askcarolynwarren posted: ” If you make one of these mistakes during the > home buying process, your approval can be turned into a denial. Even if you > are fully approved and have signed documents, you can be denied — even one > minute before closing. The lender has the right to st” >

  2. Love job information you give on getting past the mortgage approval hurdle. I am in the process of buying a single family home in Newburgh, NY. The delicate dance you do when trying to buy a home and the stability one has too show the bank is nail biting. Because I was offered a job at a boutique gym that will pay more in salary. The job I am currently working at is part time and when the mortgage information was submitted I was looking for full time work.
    Do I work these 2 jobs and when ask if I have additional income, do I reveal I work a full time job?

    1. Dolly, I hear you loud and clear about the mortgage process! If you change full-time jobs for better pay, that is no issue. But if you go from part-time to full-time, you need to tell your loan officer immediately, because lenders will have different requirements for the amount of time you need to work at the new full-time position, as it may require an exception to the one year guideline. If you have two jobs, you can count both incomes if you plan to keep both jobs (assuming qualification as I said.) If you give notice to quit one job, then that job’s income cannot be included. Future, intended work does not count; only a job where you have received a paystub can count. * You really need to discuss all the details with your loan officer — preferably a mortgage broker who has more lending options than a bank or direct lender.

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