THE DON'T LIST WHEN BUYING A HOME

Lenders rely on debt ratios when approving mortgage loan applicants. This means they are approving “what is” at the time of application.

Debt ratio is the ratio of what debts you have to pay monthly versus what income you gross monthly. If you change this ratio by opening a new credit card or buying a car after loan approval but before closing, you risk the chance of not qualifying for the loan.

Think the lender won't know? Big mistake, the lender pulls a new credit bureau the day of closing which will list the new debt. Even if you can afford the new debt it puts your loan request back into underwriting for additional verification. This can delay your loan closing by several days. If your debt ratio does not qualify with the new debt, this results in a denial of the loan.

Do not charge on a credit card after loan application.

Do not buy those drapes you see on sale for the new bedroom.

Do not buy that new car for the 2 car driveway.

Do not miss any payments to your current creditors or landlords

Do not quit or change your job during the loan process

Do not give misleading information on your application.