{"id":1357,"date":"2020-12-21T15:37:35","date_gmt":"2020-12-21T15:37:35","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1357"},"modified":"2022-01-11T14:11:27","modified_gmt":"2022-01-11T14:11:27","slug":"dos-donts-applying-mortgage","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/dos-donts-applying-mortgage\/","title":{"rendered":"The Do\u2019s and Don\u2019ts after Applying for a Mortgage"},"content":{"rendered":"
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The Do\u2019s and Don\u2019ts after Applying for a Mortgage<\/p><\/div>\n

Once you\u2019ve found the right home and applied for a mortgage, there are some key things to keep in mind before you close. You\u2019re undoubtedly excited about the opportunity to decorate your new place, but before you make any large purchases, move your money around, or make any major life changes, consult your lender \u2013 someone who is qualified to tell you how your financial decisions may impact your home loan.<\/p>\n

Below is a list of things you shouldn\u2019t do after applying for a mortgage. They\u2019re all important to know \u2013 or simply just good reminders \u2013 for the process.<\/p>\n

1. Don\u2019t Deposit Cash into Your Bank Accounts Before Speaking with Your Bank or Lender.<\/strong>\u00a0Lenders need to source your money, and cash is not easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.<\/p>\n

2. Don\u2019t Make Any Large Purchases Like a New Car or Furniture for Your New Home.<\/strong>\u00a0New debt comes with new monthly obligations. New obligations create new qualifications. People with new debt have higher debt-to-income ratios. Higher ratios make for riskier loans, and then sometimes qualified borrowers no longer qualify.<\/p>\n

3. Don\u2019t Co-Sign Other Loans for Anyone.<\/strong>\u00a0When you co-sign, you\u2019re obligated. With that obligation comes higher ratios as well. Even if you promise you won\u2019t be the one making the payments, your lender will have to count the payments against you.<\/p>\n

4. Don\u2019t Change Bank Accounts.<\/strong>\u00a0Remember, lenders need to source and track your assets. That task is significantly easier when there\u2019s consistency among your accounts. Before you transfer any money, speak with your loan officer.<\/p>\n

5. Don\u2019t Apply for New Credit.<\/strong>\u00a0It doesn\u2019t matter whether it\u2019s 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\u00ae score will be impacted. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.<\/p>\n

6. Don\u2019t Close Any Credit Accounts.<\/strong>\u00a0Many buyers believe having less available credit makes them less risky and more likely to be approved. Wrong. 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 determinants of your score.<\/p>\n

Bottom Line<\/strong><\/h3>\n

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.<\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE <\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Below is a list of things you shouldn\u2019t do after applying for a mortgage. Finish Reading The Do\u2019s and Don\u2019ts after Applying for a Mortgage<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[36,69],"tags":[38,15,10,18,27,91,56,52,9,49,307,33,228,20,12,24,48,13,58,6,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1357"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1357"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1357\/revisions"}],"predecessor-version":[{"id":1359,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1357\/revisions\/1359"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}