What NOT to Do After Applying for a Mortgage

Don't Make Any Big Purchases

After applying for a mortgage, it is important to avoid making any big purchases such as a car or furniture. This is because it can increase your debt-to-income ratio and lower your credit score, which could lead to a higher interest rate on your mortgage. It is best to wait until after you have closed on your home before making any big purchases.

Don't Change Jobs

Changing jobs after applying for a mortgage can negatively impact your chances of getting approved. Lenders want to see stable employment and income history. A sudden change in employment can make them question your ability to repay the loan. If you must change jobs, it is best to do so before applying for a mortgage.

Don't Miss Any Payments

Missing payments on your credit cards or other loans can hurt your credit score, which can lead to a higher interest rate on your mortgage. It is important to make all of your payments on time and in full. Set up automatic payments or reminders to help ensure that you don't miss any payments.

Don't Open or Close Any Credit Accounts

Opening or closing credit accounts after applying for a mortgage can also hurt your credit score. This is because it can impact your credit utilization ratio, which is the amount of credit you are using compared to your credit limit. It is best to maintain your current credit accounts and avoid making any changes until after you have closed on your home.

Don't Co-Sign for Anyone

Co-signing for someone else's loan can also impact your credit score and debt-to-income ratio. Even if you are not the one making the payments, the loan will still show up on your credit report. This could make it harder for you to get approved for a mortgage or lead to a higher interest rate.

Conclusion

In conclusion, it is important to be cautious after applying for a mortgage. Avoid making any big purchases, changing jobs, missing payments, opening or closing credit accounts, and co-signing for anyone until after you have closed on your home. By following these tips, you can increase your chances of getting approved for a mortgage and secure your dream home.