5 Things You Should Never Do Once Your Loan is Approved

5 Things You Should Never Do Once Your Loan is Approved

Applying for a home loan? If you've done all of the work to finally get approved you certainly don't want to sabotage your loan now. However, there are things that borrowers have done that have completely ruined their chances of getting the home loan and even buying a home. That's not something that you want to do. Once you are approved for a home loan and your rate is locked in, it's like you need to freeze your spending. But, no matter how much advice you can give someone, there's always those that make mistakes. As my father always said, you can't make all the mistakes in the world you have to learn by other peoples. Here are 5 major mistakes and things not to do once your home loan is approved.

#1. Buy anything major.

Like I just said, once your home loan is approved freeze any major spending. Yes, you still need to be paying your bills and you can buy groceries, gas, and normal everyday things, but this is not the time to buy a new car or make huge purchases like buying new furniture for the home you think you're going to get. Even if you take out a $1000 home loan or purchase something over $1000, that will trigger your lender to take a look at your finances. They expect you to have enough money in case of an emergency so by spending that money in your bank account, you now don't have enough liquid funds to support that and that may ruin your chances of getting the best interest rate and even the home loan at all.

#2. Canceling credit cards.

You might think that canceling credit cards or eliminating any available balances is a good thing but not in the middle of your loan application. Lenders take a look at all of your available credit, which means that if you have four credit cards and three of them have a zero balance but one of them is maxed out, canceling those three with a zero balance means that now you have zero available credit. That does not look good to lenders. Even if you have credit cards and loans out there with a very low balance or zero balance, keep them until you close on your home loan. This will show that you are responsible with available credit and not maxing out everything you have.

#3. Losing your job or changing jobs altogether.

"This is similar to freezing your spending. Unless you're getting a promotion within the same line of work or within the same company, try not to make any major changes to your employment status. Losing your job, quitting and reapplying for another job, or getting laid off all will affect your chances of getting a home loan. Try not to make any major employment status changes until your loan closes." - Seattle Real Estate Agent

#4. Cease making payments.

This should be a no-brainer, but try to stay up with all of your monthly payments this includes medical bills, insurance payments, car payments, student loan debts, credit card payments, utility payments, or pretty much anything that you know you have to pay on a regular basis. Make sure they are paid on time throughout the duration of your application process.

#5. Getting a windfall.

"You might think this is a great event but any unusual spending or even any unusual deposits into bank accounts can look suspicious. While you may not be able to help some of them, if you can, wait to deposit any major gifts or investments until after the loan closes. If you can't, be sure to have some verification or explanation to provide your underwriters and loan officers just in case." - Buyers Agent Eastern Suburbs

Getting a home loan can be a little bit tricky and anxiety-inducing but if you stick to these five things and try not to make any major moves during the process, you should be clear to close.

Similar Articles

Eligibility and Documents for a Commercial Loan

A commercial loan is a common form of borrowing in the country. The loan is usually short term finance that is offered to businesses to meet their operation costs and capital expenditures. A business goes through various stages where it needs funds to grow and expand.

approved loans

While we all try our best to live within our means, it doesn’t take much to put you in a situation when you need an injection of cash; it might be a sudden emergency medical bill, or your beloved car develops a serious engine problem or even an unexpected home-related repair. 

5 Things To Know About Used Car Loan

The world has become a different place due to the pandemic. Public transport is no longer safe, a lot of offices have not opened, and there is complete uncertainty about how and when things will return to normal. If you used public transport in the past, it is best to avoid it for some time now.

unsecured business loan

With your business all set to take the world by a storm, the last thing that should stand in your way is urgent funding or additional capital. Be it for purchasing inventory, funding daily operations or buying expensive machinery for your factory, business loans are the perfect answer to your problem.

Many businesses depend on invoice discounting for getting instant access to funds

As a business owner, it is a difficult task to handle the cash flow. If you own a business, you are always on the lookout for funds to grow your business.

How To Change Your Mindset About Debt

When you are finding yourself in the throes of financial struggles, there are things you likely need to change your mindset surrounding money, spending, and debt. If you’re having a hard time with money, you’re not the only one.

Things to Know Before You Avail an Unsecured Business Loan

There are different types of loans available for businesses. An unsecured business loan has proved to be the best option, thanks to the high loan amount and flexibility in repayment. The loan does not require any asset to be hypothecated and the entire risk remains on the lender.

All You Wanted to Know About P2P Lending

Peer-to-peer lending is a type of debt financing wherein lenders and borrowers enjoy the control and freedom over the terms of a loan. There is no intervention of the intermediary financial systems. Simply, it is the term used for defining the practice of lending money by individuals with the help of services that connects the borrowers and the lenders directly.

4 Tips for Surviving Summer Without Student Loans

We’ve all been there at some point, summer has rolled around and those savings we promised we’d make to help cover us over the summer months are non-existent. Now, you find yourself with no classes – and no money! Here four tips for surviving summer without your student loan.