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Things to Avoid After Applying for a Loan

July 3, 2020

You have done everything right so far; you found a great lender, received a preapproval and submitted your loan package for final approval. Now you’re done, right? Wrong. Until you close on your new loan, it is more important than ever to keep your credit steady. Most lenders perform at least one last credit check right before they fund and a decline in your score can mean the difference between getting the home and losing the loan.

Things You Should Never Do After Applying for a Loan

Don’t Change Jobs – While sometimes it is unavoidable, especially when a new job is the reason for the move, but any change in income or job status creates risk and should be avoided if possible.

Don’t Make Any Large Purchases – As tempting as it may be to go shopping for new furniture, wait until after you close to make any large purchases. This applies to furniture, appliances, and even new cars. New loans could change your debt-to-income ratio and cause you to no longer qualify for the loan.

Don’t Apply for New Credit – Every time someone runs your credit report, your score is affected. This is not the time to search for a new credit card.

Don’t Close Any Credit Accounts – It may seem counterintuitive but closing or paying off loans or credit cards might actually bring your FICO score down. The length of time you have had your credit open has a positive effect on credit scores.

The bottom line is to avoid doing anything to your credit. If you are unsure of what you can and cannot do, ask your lender; they can guide you in the right direction and make sure you close on your new loan.

Call or text our New Home Specialist, Susan Siemiontkowski today at 228-239-2621 to start planning your dream home with today’s historically low interest rates.

Categorized in: Available Homes, Community, Home Building Info, Market Tips, Things To Do, Tools & Tips

This post was written by Acadian Homes