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3 Things You Should Never Do Before Getting A Home Mortgage

Performance Property Real Estate Question

Q: My partner and I have been waiting longer than expected to close on our first home. Our mortgage guy says we’re close. I just got a good low interest rate loan offer from SoFi. Do you think it’s okay to take it? Sarah, Prospect Park, NJ

A: Here are 3 things you should never do right before closing on a home mortgage:

  1. Apply For New Loans or Lines of Credit: Taking on a new loan or credit card will affect your debt-to-income ratio and can imperil your mortgage loan application. It’s better to wait until after you close and actually buy your home to take on new loans or new credit cards.
  2. Miss Any Credit Card Payments: Even one missed debt payment can negatively impact your credit score and hurt your chances of closing on a mortgage loan. To make sure you don’t accidentally miss any credit card payments, you should set up automatic monthly payments on all your credit cards.
  3. Quit Your Job: Most mortgage lenders require borrowers to have at least two consecutive years of employment before they approve a home loan. So, you should not quit your job in the middle of the closing process. After you get your mortgage loan and buy your home you can switch jobs then.

Thanks for your question, Sarah.

For more real estate tips and information visit my blog at geraldlucas.com.