In today’s real estate and mortgage markets there can be obstacles to clear when purchasing or refinancing a home.  Here are 5 things you should not do between the time you apply for a mortgage loan and your settlement:

  1. Change your marital status.
    1. How you hold title is affected by your marital status.
    2. Make sure you notify the lender of any changes so that the proper documents can be prepared.
  1. Change jobs.
    1. A change in jobs may result in a loan being denied.
    2. Lenders will call employers to verify and re-verify employment prior to funding a loan.
  1. Switch banks or move your money to another institution.
    1. After the lender has verified funds at one or more institutions, the money should remain there until it is needed for the purchase.
  1. Pay off Existing Accounts (unless the lender requests it).
    1. A lender may require certain bills to be paid off in order to qualify for a loan.
    2. Check with the lender before paying anything off as this may affect the amount needed in your existing accounts.
  1. Make any large purchases:
    1. A major purchase requires a withdrawal from verified funds.
    2. Increases in debt may affect your qualifying for a loan.
    3. Lenders check credit and re-verify funds at the last minute.
    4. Avoid purchases that could impact your loan approval.

*Adopted with permission from First American Title Insurance Co.