Whether you are thinking about applying for a home loan or you have already pre-qualified for one, there are things you should take into consideration. There are a handful of situations that can potentially delay closing on your home or even cause you to not be approved for a mortgage at all.
To start with, we would recommend that you do not make a large purchase in neither cash, nor credit. One of the reasons we discourage you from doing this is that you might be dipping into your savings and you might need those funds as a downpayment or to even help with closing costs. When making a large purchase on credit, it will increase your debt-to-income ratio. This means you might possibly not get qualified for a loan.
This leads into not opening or closing any lines of credit you already have. By opening or closing a line of credit, your credit score might be impacted. You may hurt your chances of getting approved for a mortgage by closing or opening. This even plays into effect if you have already pre-qualified for a mortgage. Being pre-qualified does not mean a guarantee.
This maybe common sense but we do want to remind you to be sure you do not miss any payments on your current credit cards, bills, or other loans. Even just one late payment may cause harm on your credit score. When you are in this limbo, so to speak, make sure you are not purchasing things where it might be difficult for you to pay off your bills on time. Stay within your means.
You may know this already as well, but we want to remind you that it is not recommend to start a new job during this process. We would recommend that you wait until you have closed on your mortgage before you change jobs. A steady employment history is always looked at by lenders.
If you have any other questions as it pertains to your finances and what would or would not be a good idea for becoming approved for a loan, please ask us. We are always here to help!