What Not to Do While Your Loan is in Process
red-x.png DON’T APPLY FOR NEW CREDIT – Any new credit inquiry or debt will have to be accounted for. If this is only discovered just prior to your closing it can create delays, change the terms of your financing or in some cases, even prevent qualification and closing.
red-x.png DON’T CHANGE JOBS DURING THE PROCESS – During your loan process, your employment will be verified. Any status changes such as moving from a salaried to a commissioned position, a leave of absence, or the use of bonus and overtime income unless it’s been received from the same employer for the past two years are subject to very strict rules.
red-x.png DON’T MAKE LARGE DEPOSITS WITHOUT CREATING A PAPER TRAIL – Deposits of $1000 or more (even less in some instances) must be sourced. Plan ahead and make copies of checks and deposit slips.
red-x.png DON’T WAIT TO LIQUIDATE FUNDS FROM STOCK OR RETIREMENT ACCOUNTS – If you’re borrowing against your retirement savings or cashing in stocks, don’t wait to get this done. You will need to provide evidence of the liquidation and transfer.
red-x.png DON’T START ANY HOME IMPROVEMENT PROJECTS – Small cosmetic projects, like painting, are not usually a problem but anything like bathroom or kitchen renovations, structural projects, or anything that disrupts functionality can be an issue.