4 . Don ’ t Change Bank Accounts
Remember , lenders need to source and track your assets . That task is much easier when there ’ s consistency among your accounts . Before you transfer any money , speak with your loan officer .
5 . Don ’ t Apply for New Credit
It doesn ’ t matter whether it ’ s a new credit card or a new car . When you have your credit report run by organizations in multiple financial channels ( mortgage , credit card , auto , etc .), your FICO ® score will be impacted . Lower credit scores can determine your interest rate and possibly even your eligibility for approval .
6 . Don ’ t Close Any Accounts
Many buyers believe having less available credit makes them less risky and more likely to be approved . This isn ’ t true . A major component of your score is your length and depth of credit history ( as opposed to just your payment history ) and your total usage of credit as a percentage of available credit . Closing accounts has a negative impact on both of those aspects of your score .
Any blip in income , assets , or credit should be reviewed and executed in a way that ensures your home loan can still be approved . If your job or employment status has changed recently , share that with your lender as well . The best plan is to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature .
Bottom Line
You want your purchase to go as smoothly as possible . Remember , before you make any large purchases , move your money around , or make any major life changes , be sure to consult your lender – someone who ’ s qualified to explain how your financial decisions may impact your home loan .
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