For many people owning a home is the “American Dream”. But not many people can save up enough money to buy a home, especially in areas where the cost of a home is many times more than they make in any given year. Because of the cost home buyers may turn to banking institutions (Lender) to help them with the purchase by way of a home loan, or mortgage.
When a buyer applies for a mortgage from a lender there are initial qualifications that need to be met before the buyer can get approval for the funds.
Let’s assume, for the sake of this article, that you have already met the initial qualifications for a loan, received your pre-approval from the lender, got the home of your dreams under contract, performed your due diligence and are now waiting on your closing day to arrive. While you may assume that nothing can derail the purchase of the home of your dreams, you need to be aware of certain pitfalls that will certainly disqualify you for the mortgage before you sign the papers.
Being aware of the possible pitfalls, you can avoid making the same mistakes that many before you have made at their own American Dream peril.
Because lenders do a final check, either the day before or the day of the home closing procedure, the following actions should be avoided until after you have signed the loan papers. Doing any one of the following actions will most likely cost you the home of your dreams.
- Do not quit your job.
- Do not apply/open new lines of credit.
- Do not co-sign for anyone’s line of credit.
- Do not close any open credit accounts.
- Do not default on any open credit accounts.
- Do not put cash into your bank account.
- Do not switch banks or move any money.
The lender is giving you a loan based on your current income, assets and credit. By disturbing any one of those items you could disqualify yourself from receiving the loan.