1. Change Jobs
A lender uses your income to prove that you can pay your loan. Changing jobs may result in your loan being denied particularly if you change fields or earn less money. Your employment will most likely be verified at the beginning of the loan process and again just before closing.
2. Move Funds Around
Your lender will verify your cash to close and monthly payment reserves prior to finalizing your loan. Lenders do not like to see large cash deposits or unexplained funds. Once funds have been accounted for, any changes could result in a delay in your loan approval. Like employment, these accounts may be verified again prior to closing.
3. Make a Large purchase
Lenders often require funds in reserve in excess of your closing costs. A large purchase using your verified funds may cause you to fall below the amount your lender requires. Taking on new debt may also cause your loan to be denied. You will have to wait until after closing to purchase that new furniture!
4. Pay Off Existing Debt
Your lender may require that you pay certain debts prior to or at closing. That is advice you must follow to obtain your loan. Paying off other debt may seem like a good idea but it may hinder your loan approval. For now keep those funds in the bank and payoff the loans after closing.
5. Skip the Inspection
A home inspection may reveal issues that you did not notice while excitedly walking through the house. There are different types of inspections such as visual, structural, termite and wind mitigation. Discovering a potential problem upfront can give you reason to walk away from a home or possible negotiate with the seller for a credit or repair.
6. Lie On Your Application
Your loan officer or mortgage broker will ask you questions about income, assets and liabilities. Even a small white lie on your application is considered mortgage fraud and is a federal offense.