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
- You cannot quit your job or go on furlough. This will turn your approval into a denial
- 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.
- 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.