So you just purchased a home and closing is in 45 days. You make loan application with your lender and he or she lets you know everything is great and you are approved. You are super excited! But the key now is to stay approved. In order to do that you must avoid the following things during the loan process:
1) Do not apply for any new credit or open any new credit. This could drop your credit scores or knock your ratios over the limit. Some lenders pull your credit again at the end of the transaction to make sure you do not have new debt.
2) Do not change jobs or change the way you are paid. If you receive a salary and change to commission during the application process, that could cause huge problems.
3) Do not transfer money around. If you do, let your loan officer and processor know exactly what you are doing. They will tell you what documentation you need to show.
4) Do not make random or undocumented deposits into your bank account. Show a paper-trail for any deposit. Plus, be prepared to explain and document any large deposits you have made in the last 60 days.
5) Do not accept any gifts without letting your lender know. Your lender will tell you what documentation is needed plus let you know if the gift is even allowed.
6) Do not forget to pay your bills. A missed payment could knock your scores down and change the loan from an approval to a refer.
Avoid these 6 items and the loan process will be much smoother and less stressful.