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Waiting to Close on Your Loan: Top Things to Avoid

Waiting to Close on Your Loan: Top Things to Avoid

Most real estate experts noted that the mortgage loan rate is on a big drop these past few years. Others are speculating that the trend will continue. This situation may not be good for those who are planning to sell their properties. On the other hand, the trend becomes favorable for homebuyers. In Phoenix and any other place, there are professionals who you can depend on when it comes to this matter.

Moreover, when you decide to settle for good and own a house, here are the things that you must avoid:

Opening a New Credit

You feel great because you just moved into a new home. The next thing that you might think of is to obtain new stuff for your new dwelling. It’s more frequent that first-time homebuyers tend to open a new line of credit at an appliance store to get the new washer and dryer, or a home theater set that can provide total entertainment for family member and friends. Others are applying for a new credit card just to maximize the available points for future purchases.

If you have numerous debts to manage for the month, it may affect your credit score if a mishap happens. This will alarm your mortgage lender if you are missing to meet your obligations. Thinking of the worst-case scenario, there’s a greater chance that you won’t become a qualified borrower if your credit score is unsatisfactory. For you to be on a safer side, as much as possible, refrain from opening new credit when you are waiting to close a more significant loan.

Moving Money Around

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In most cases, before mortgage lenders agree with you in financing a home, they would ask you to present your assets. A guarantee that you have the down payment on the property and enough reserves for other necessary costs will not cause any issue with your money lender.

When it comes to utilizing the money in your bank account, you need to consider the implication whenever you withdraw funds. Say, for example, you have a business bank account; you would get money from that account to suffice your personal needs.

As much as possible, you should cease from withdrawing a significant amount of money. This will help you to avoid sending up red flags with your mortgage lender.

Closing Old Credit Accounts

Your mortgage lender talks to you to deal with your credit score. Typically, your debt utilization ratio is being calculated by dividing the amount you’ve requested from the credit available to you. If you close your old credit accounts, the tendency is your debt utilization ratio goes higher. The bottom line is, when this happens, it will have an adverse impact on your credit score, leading to jeopardizing your mortgage.

Resigning From Current Job

Your mortgage lender was confident that you could pay back your loan because you have provided him with everything, including your work credentials. You can quickly get financing help when they see that you have a steady source of income.

Sometimes, opportunities may arise all of a sudden and a distinct job post may attract you to quit your current job and shift careers. This is something you must never do while waiting to close your mortgage if you don’t want to be included in the blacklist of your mortgage lender.

Don’t make such moves that will postpone your mortgage closing. Get help from experts who can guide you in pursuing the loan process. Knowledgeable industry professionals are readily available to provide the assistance and information you need.

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