14 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 8 Number 16 www.LynchburgRealEstateBrowser.com What NOT to Do When Buying a Home By Sherry Brady, Branch Manager, Summit Mortgage Corporation When you’re in the process of buying a home, it’s quite common to start having thoughts of things you want to do once your new home is yours: upgrades you want to make, or things you want to buy…new furniture possibly…new appliances perhaps. Or, maybe you’re not sure what you’ll need just yet, but you know you’re going to need something, so you decide to go ahead and open a new account at the local home store, so you’ll be ready when the time comes. DON’T DO IT! Opening any new lines of credit or making any major purchases while you’re in the process of buying your new home could cause major prob- lems. It could possibly even cause you to no lon- ger qualify for the loan! Why is this so critical? Because your lender is required to ensure that you can repay the loan they are about to give you. Mortgage lend- ers have always done this in some fashion, but it became more standardized in 2014 when the Consumer Financial Protection Bureau estab- lished the “Ability-to-Repay Rule”, requiring mortgage lenders to ensure that you are not tak- ing on too much of a financial burden with your new loan. To accomplish this, the lender must be sure they have a complete picture of all your outstanding financial liabilities. When you first apply for a mortgage loan, your lender will pull your credit report, examine your financial statements, and conduct a personal interview to be sure they have a complete under- standing of all your income, assets, and liabilities. After this initial interview process, the lender will then monitor your credit activities until your new loan is closed. In years past, many lenders would pull a new credit report just before closing. Typically, that is no longer done because it could negatively impact your credit score. Instead, lenders today do con- tinuous background monitoring which has no impact on your score, and your lender is notified sooner in the event of any new applications for credit. Once you apply for a mortgage loan, it is critical that you continue to pay everything on time, don’t close any of your open accounts, don’t open any new accounts, and don’t max out your existing lines of credit. Basically, keep doing what you’ve been doing, unless your lender specifically asks you to do something else. Also, don’t change employment unless it’s unavoidable. If you must change jobs in the middle of your loan process, be sure to discuss it with your loan officer in advance to be sure doing so won’t negatively impact your loan approval, and so they have time to do complete the employment verifications they are required to perform. Obtaining a mortgage loan these days can be a bit tricky, but at Summit Mortgage Corporation, we’re ready to guide you through the process. Go online to www.LynchburgLender.com or call us at 434-237-1027 to speak to one of our highly qualified and experienced team members to start your Summit Experience today! Summit Mortgage Corporation NMLS #1041, nmlsconsumeraccess.org, Equal Housing Opportunity.