The Meeting Process:

Things you Should Not Do once you have applied for your mortgage

1

Buy a big-ticket item.(A car, a boat, or an expensive piece of furniture)

Buying or borrowing big-ticket items usually mean your debt and credit score will change. Your pre-approval is based on a financial or credit picture of you at a point in time. Anytime you change that picture, you could be jeopardizing your approval. Even if you pay cash, it will impact your bank account balance and reserves. If you must, be sure to contact your Loan Originator first, so you can identify if there will be any issues and make sure to properly paper trail everything.
2

Quit or switch your job

Likewise, your work history and your income are critical pieces of your approval. Be sure to contact your Originator if a job change or pay change is about to happen. This way they can secure a new pre-approval based on the new employment, or advise you if it is not the right move.
3

Open or close any lines of credit

Opening or closing lines of credit will impact your FICO score which could not only have an impact on your rate quote but also your approval. It is best to leave your credit accounts as-is during the process. If it is critical, then consult your originator and document all changes.
4

Pay bills late

Late payments will adversely affect your credit score. Credit gets pulled when you apply for a loan but it also gets pulled again before closing and funding to make sure nothing has significantly changed. It can and likely will affect your rate and require explanation letters.
5

Ignore questions from your lender or broker

When a lender asks questions, it is usually because they need to explain something to the underwriter concerning your specific situation. The sooner you respond with a thorough answer, the sooner the originator can take appropriate action to make sure the loan is approved with no last-minute surprises.
6

Let someone run a credit check on you

Although it is sometimes unavoidable with credit card companies, try to avoid any other credit pulls as those can have an impact on your FICO score, even if you do not acquire new credit. Although the pull is usually not a significant change, it will need to be explained. If your FICO score is on the edge of a rate differential, you do not want your score to impact you adversely.
7

Make large deposits to your accounts outside of your paycheck

Lenders review bank statements to not only verify assets and reserves but also to “source” them. Although large deposits are allowed, your originator will have to document them, to confirm they are not new loans or undocumented gifts. If you receive a large deposit that is outside your normal employment income, be sure to gather all the paperwork sourcing the funds and talk with your originator.
8

Cosign a loan with anyone

Cosigning another loan is as good as taking out a new debt because it will impact your credit score as well as your qualifying ratios. Although you may not plan on being the one making the payment on the new loan, you are legally responsible for it unless there is a long documented history of the other borrower making that payment.
9

Change bank accounts

This will technically not impact your credit or qualifying ratios. You will simply need to paper trail the movement of the funds, which can become difficult if your new bank doesn’t yet have monthly statements for you. If you are within 2 months of closing on your loan, you probably want to keep your assets where they are until you have closed and funded them.

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