The offer you put in on your dream home has just been accepted, and you’re set to close in 60 days! YAY! Maybe you are thinking about the opportunity to decorate your new place with new furniture, but before you make any large purchases, move your money around, or make any significant life changes, consult your lender. Big changes may impact your qualification status. A lender will be able to walk you through how your financial decisions may impact your home loan. Below are just some suggestions from Keeping Current Matters, a leading Real Estate Resource, to keep in mind during your mortgage approval process.

Don’t make any large purchases like new furniture for your home or a new car

When you get pre-approved, the lender takes a look at your debt-to-income ratio. If you purchase any large items, you might have a higher ratio, and sometimes qualified borrowers are no longer qualified.

Don’t Co-Sign Other Loans for Anyone

Even if you are not making payments to the loan, this may change your estimated debt-to-income ratio, and may affect your ability to qualify for particular loan programs.

Don’t Change Bank Accounts.

Lenders need to track and source your assets. This is significantly easier when there is consistency among your accounts.

Don’t Apply for New Credit. 

It doesn’t matter whether it’s 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® score will be impacted. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

Don’t Close Any Credit Accounts

Many people believe that having less available credit makes them less risky, but that is not true. A significant component of your credit score is the 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. 

The best plan is to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.