Ways That Buyers Can Mess Up a Loan Approval

Now that you have been approved for a mortgage and are just waiting to make it to the closing table, do not throw your loan approval into jeopardy by making one of these common mistakes:

-Making a big purchase: Avoid making major purchases, like buying a new car or furniture, until after you close on the home. Big purchases could change your debt-to-income ratio that the lender used to approve the buyer’s home loan and could throw the approval into jeopardy.

-Opening new credit: Now isn’t the time to open up any new credit cards.

-Missing any payments: Be extra vigilant about paying all your bills on time, even if you're disputing one.

-Cashing out: Avoid any transfers of large sums of money between your bank accounts or making any undocumented deposits — both of which could send up “red flags” to your mrtgage lender.

Source: “How to Keep Your Mortgage Approval Approved,” Realty Times (Jan. 14, 2013)