Welcome to the second part of my two-part series detailing what homebuyers shouldn’t do during the loan process. As you’ll remember, I listed the first six homebuyer don’ts in the first part. Here are the final six to round out the complete list:
7. Don’t apply for more credit. You don’t want to open any more accounts or have any more inquiries to explain. The next time you’re at a department store and they offer another 10% off if you sign up for another credit card, just say no.
8. Don’t make any large deposits or cash deposits. If you make a large deposit we can track that comes from an approvable source, that’s fine, but you’ll still want to check with us first. Otherwise, avoid any large deposits or moving money from one account to another.
9. Don’t cosign for any loans. If you cosign for someone else’s loan, or credit card, or car payment, it’s your liability too, and this can affect your credit score.
10. Don’t make any late payments. You should never make any late payments, but this is especially important to avoid during the loan process. Your lender will do a soft credit pull late in the process, and any late payments will harm your credit score.
11. Don’t pay any collections or charge-offs. This is another item where you’d be well-advised to speak with us first before making a move. Think of it as a beehive—if you leave it alone, it’ll leave you alone.
12. Don’t avoid speaking with your mortgage professional about any of these items. As I’ve already said multiple times: We’re here to help you.
As always, if you have any more questions about this or any other mortgage-related topic, don’t hesitate to reach out to me. I’d love to help you.