Just because you may have been pre-approved and have your dream home under contract does not mean you can run amok with your finances and assume your dream home is as good as yours. Although the financial heavy lifting may be done, there is still a little way to go before the keys are officially yours.
- Don’t shop for more credit.
When you shop for more credit, it actually hurts your credit rating and makes you look bad to mortgage lenders. If you are in need of a new credit card or line of credit, wait until after you purchase your home.
- Don’t make large purchases (that are not the home you want to buy)
This includes new vehicles, boats, campers, or other large ticket items. Lenders look at how much you owe to others before deciding your mortgage approval amount as well as your overall cash flow.
- Don’t shop for you new home until you own it
The idea of buying a new home is exciting! Do not let that excitement get the better of you by running out an purchasing a new couch and other home furnishings – wait until the sale is closed, and then shop until you drop.
- Don’t let payments slide
Make sure to stay on top of all credit card payments, car payments, loan payments, etc. Any slip could cost you the pre-approval and mortgage eligibility you so desire.
- Don’t spend your savings
No matter how close you are to the finish line, keep your savings safe until the close of your home sale. You need to remember you will be needing a good size down payment, as well as to pay for closing costs, legal fees, moving expenses and more.
- Don’t over-extend you credit
Best rule of thumb to follow – leave your credit alone! Keep making payments on the things you owe, but do not use more than you already have! This includes so-signing loans for friends or family, using credit cards excessively, or make inquires into your credit standing.