Once a loan is preapproved, many homebuyers mistakenly believe their loan is a guarantee. Little do they know, mortgage lenders are still working to fully approve and push their loan through up until closing day. With these tips, a new homebuyer can help to avoid some common mistakes and sail through the loan process when buying a new home:
1. Don’t pack papers too early
Underwriters may ask for extra documents so until the loan actually closes, the safest approach is to keep personal financial documents readily available.
2. Don’t use a 10% appliance discount
Some stores offer an extra 10% off when clients open a new credit card. Applying for that card could cause your credit to be pulled again just before closing, causing your score to drop and possibly delaying the close.
3. Don’t make large cash deposits
Defer that $1,000 cash birthday gift until after closing. All “gifts” have to be verified with a detailed paper trail, so you should avoid making large deposits by cash or check during a home purchase.