Handle that Mortgage Approval with Care

by Keith Landis on October 13, 2010

With tighter underwriting guidelines, mortgage approvals are not as easy to come by as in years past.  Once a mortgage approval is obtained it should be handled with “kid gloves”.

Keeping that in mind, here are 8 things you should absolutely not do between the date of application and the date of funding.  I’ve been doing this long enough that I can say with certainty: Ignore these rules at your own peril.

Eight “Don’ts” during the mortgage process

  1. Don’t buy a new car or trade-up to a bigger lease
  2. Don’t quit your job to change industries or start a new company
  3. Don’t switch from a salaried job to a heavily-commissioned job
  4. Don’t transfer large sums of money between bank accounts
  5. Don’t forget to pay your bills — even the ones in dispute
  6. Don’t open new credit cards — even if you’re getting 20% off
  7. Don’t accept a cash gift without filing the proper “gift” paperwork
  8. Don’t make random, undocumented deposits into your bank account

Now, it may be impractical to have follow every rule to the letter.  For example, if your car lease is expiring,  you have to do what you have to do.  But before renewing the lease, check with your loan officer to see if renting a car for the short-term would be a better solution instead.  Always check with your loan officer before making any financial move during the loan process.  The wrong move could jeopardize your purchase transaction.

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