STOP!!!! Don't do That before closing on your new house!

The big day is almost here ... you are about to own your new home.  All the paperwork has been done, all inspections completed, you just finished your walk-through and you're about to sit down at the closing table and get the keys.  Your loan officer calls you to tell you not to bother; WHAT?!?  He explains that you are no longer eligible for the loan because of recent changes in your financial history.  You didn't follow the advice given you by the loan officer, mortgage broker, realtor, etc.

Here are some things to NOT do while you're looking to buy a home:

• Don't close any accounts - It makes it look like you have less available credit
• Don't make any new bills - New accounts give your credit a triple whammy.  Wait until after closing to buy that new furniture.
• Don't buy a car - See above.  Also increases your debt ratio
• Don't pay bills late - This will drop your FICO score as well and is especially harmful if you marginally qualify for a loan.
• Don't quit your job - You'd think this would go without saying but, trust me, it happens.

If you are reading this and realize that you may have already damaged your chances of buying a house in the near future, don't despair.  With a little bit of time and the right help, you can repair the damage.  Talk to your Realtor and get some names of an experienced Loan officer and set up an appointment without delay!  They will go over your credit report with you and gather enough information to know what next steps you need to take to repair your credit.  

Many potential buyers don't understand that the criteria a lender uses is not solely about income.  Your income - debt ratio is a key factor.  If you don't have enough debt, that can also negatively affect your scores.  A solution to this may be something as simple as a secured loan.  For example, instead of buying a car with cash, pay for the car with a secured loan.  It is like buying with cash but allows you the benefit of improving your credit scores.  Your local bank or credit union can give you advice specific to your situation.

Don't let a mistake cost you your dream house!  Ready to look?  Contact me today: Email:  HomesByMischelle@gmail.com; Text:  757-761-1119.  Or check out my websites:  ProActiveTeam.net or HomesByMischelle.kwrealty.com

Source : articlesbase.com