The Do’s and Don’ts You May Encounter in a Home Purchase Transaction.
These do’s and don’ts are important to follow just before & during the mortgage process. Once you have closed on your loan, you can return to normal practices!
- Do continue making your rent payments, if applicable
- Do stay current on all your existing credit cards and other liability accounts
- Do keep working at your current employment. (Yes, some people quit their jobs while getting a loan!)
- Do continue using credit as usual (as long as “usual” means paying on time!)
- Do call your lender if you have questions or want to change your finances in any way
- Don’t make any major purchases without discussing it with your mortgage professional first (car, furniture, refrigerator, etc.)
- Don’t apply for new credit (even if you’re “preapproved”)
- Don’t open a new credit card
- Don’t transfer any credit card balances
- Don’t pay charge-offs (unless your lender says to do it)
- Don’t pay off any collections (you guessed it- ask your lender first)
- Don’t close any credit card accounts
- Don’t increase your credit card debt
- Don’t change bank accounts
- Don’t consolidate debt or credit cards
- Don’t take out a new loan (yeah, people have done it)
- Don’t open a new cell phone account – or any new accounts!
- Don’t pay off loans or credit cards unless your lender says its ok
It’s probably becoming clear that the best rule of thumb is “Don’t Change Anything!” unless you talk to your lender first.
