When you submit your mortgage application for your new Whittier CA area home, you might think your financial work is over. You have a great credit score, your savings are in order, and you are confident that you will be approved. However, even if you are approved for your loan, there are still mistakes that you can make during this time that can affect your qualifications for the loan. Avoid these financial mistakes after submitting your application so that you can enjoy life in your new home!

 

Closing Credit Accounts. Although you might think that closing accounts so you have less lines of credit makes you less risky, but really it can negatively affect your score. This is because it changes your percentage of available credit in relation to credit used. In addition, lenders want to see your length of credit history so don't close accounts at this time.

Applying For New Credit. Every time you apply for new credit, a credit check is run and your FICO score goes down. Don't open a new credit card or start an automobile loan because it could affect your eligibility.

Being A Co-Signer. Similar to the previous mistake, this one will add an additional line of credit to you, regardless of whether you are the one actually making the payment or not. Avoid co-signing anything no matter how much you might want to help another person out.

Depositing Cash. It is important that lenders can trace the source of your money and cash makes this hard to do. Talk to your loan officer before making cash deposits so they can better help you with important documentation.

Changing Bank Accounts. Your current bank accounts are used to track your assets by the lender. Do not close any accounts, open new ones, or switch banks during the mortgage process.

Making Large Purchases. Large purchases, such as vacations, vehicles, and furniture, can increase your debt and change your qualifications. Even if you can afford the item upfront, it is best to hold off on large purchases until after closing on your new home.

Job or Income Changes. Your job and annual income are very important factors that lenders base decisions off of. Career changes or alterations to your salary can keep you from being approved for your mortgage.

 

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