Three Don’ts to Share with Buyers to Ensure They Close
Don’t buy a new car before closing
Purchasing a home can result in a lot of excitement for buyers. Some may think that another major purchase will complement their new home. But large purchases, such as new furniture or vehicle, could disqualify them for a mortgage by lowering their FICO score. Buyers should wait until they close to make big purchases.
Don’t make large bank deposits
Underwriters are reviewing buyers’ bank accounts throughout the mortgage process. Any large deposits will require letters of explanation because they’re considered ‘red flags.’ It’s better for buyers to avoid any large deposits, or suggest buyers speak with their loan officer for advice.
Don’t apply for credit
When lenders are working to verify a borrower’s income, they look at their debt-to-income ratios and pull credit. Buyers should avoid opening any new lines of credit before closing, as it could increase their mortgage’s interest rate – or worse, they may no longer qualify for a loan.
