After you apply for a mortgage in New Jersey and you’re told you have been pre-approved, don’t think it’s all smooth sailing to the closing table. Because YOU might do something to foul things up. Happens a lot, especially if you were not warned by your loan officer.
Even if you were pre-approved at the beginning, the mortgage approval process is not a “static” process. A snapshot of your situation is taken initially, but the underwriter reserves the right to update your information anytime before your loan closes. And if things have changed, you could lose your loan.
This is painfully important if you are trying to buy a home.
Here’s the list of what you must NOT do while your loan is processing:
- Do not quit your job.
- It would be great if you don’t get fired either.
- Do not use your credit cards for anything but minor purchases; and since minor purchaeses can add up, try not to use them at all.
- Do not spend any savings you have disclosed in your application, especially if you are buying a home. Do not move funds around between accounts.
- Do not buy or lease a new car, or other large item.
- Do not buy items using the “buy now pay later” plans. It still shows up on your credit – immediately.
- Do not close any credit accounts.
- Do not open any new credit accounts.
- Do not throw away financial documentation that might be needed during processing. Keep paystubs, W2s, bank statements, mortgage statements, credit card statements, etc. You can shred them after you’re done.
If you keep your situation about equal to when you applied, you should be fine. Should something arise where you need to make changes, discuss it with your loan specialist immediately.
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{ 2 comments… read them below or add one }
This is a great list that we give our clients as well!
As a processing manager to now mortgage broker, these are all very important to close a loan.
And sometimes it helps and sometimes it doesn’t. Putting it in writing is always better.
I will continue to follow Naomi. Nice to meet up.