If you have applied for a mortgage, you usually want to go ahead with it. This is especially true if you are using a mortgage to finance a purchase of a new home. Sometimes, things about the mortgage will change between application and closing – if you get a variable rate mortgage, for example, and rates go up. Sometimes, however, something you do affects the mortgage and causes issues on the day of closing. Here are some things not to do once your mortgage has been approved:
- You change your employment. Whether it is to a new job, or changing your hours or payment structure, if your employment changes, you could jeopardize your approval. Always speak to your bank or broker before doing this if it will happen before closing.
- You take on more debt. Don’t buy a car, borrow significant amounts on a credit line, or let a credit card go overdue. A change in credit will definitely affect your mortgage.
- You co-sign someone else’s loan. Even if the debt isn’t yours, if it will show up on your credit check, your mortgage lender won’t like it.
Before you take any financial action that could affect a mortgage you can’t afford to lose, check with a professional advisor.
