WHAT NOT TO DO AFTER YOU APPLY FOR A MORTGAGE!! Prepared By Gloria Brda Best Wishes with your home purchase! You have finally found the perfect home after your search, and now your seller has accepted your contract. The contract is signed, dated, and delivered. You have now gone through the application process to obtain your mortgage. The closing is just 45 days away, and you are feeling content. This picture might seem like "smooth sailing" now, but don't be surprised to know that your shopping sprees must stop before your home closing. I have provided a list of "NO-NO'S" to stay away from until after your closing date. DO NOT TAKE ON ANY NEW DEBT. The temptation is really strong. There are so many big purchases that you feel you must make in connection with your move such as: appliances, window treatments, furniture, etc. When you add this to the fact that today, retailers offer easy terms and "no money down." It is very hard to pass up these good opportunities. You must hold off because you will change your "back end" qualifying ratio. The back end ratio is what the mortgage company considers when they are calculating your income to your outstanding debt load. DO NOT CHANGE JOBS. This is not the time to be making your career move. Just because it may be a better job with more money, you need to consider that the lender looks at the length you have been on the job. They are partial to stability. A completely different field will really complicate your scenario. Changing jobs will initiate the need for more questions and documentation, therefore causing a delay. DO NOT CHARGE MORE THAN YOU HAVE TO. Yes, it is all right to buy gas and go out for dinner! IN SHORT, DO NOTHING THAT NEGATIVELY IMPACTS YOUR ABILITY TO QUALIFY FOR YOUR MORTGAGE LOAN. YOUR MORTGAGE TRANSACTION IS AN ON-GOING PROCESS THAT CAN TAKE INTO ACCOUNT EVERYTHING THAT YOU DO RIGHT UP UNTIL THE DAY OF CLOSING. [ Back to Gloria's Library of Helpful Articles ] Gloria Brda, Realtor Associate® RE/MAX CENTER 100 N. Atkinson Road, Suite 106 Grayslake, Illinois 60030 Toll Free: 800.257.REMAX Office: 847.223.7878 x3021 Fax: 847.223.1703 www.gloriabrda.com Real Estate in Northern Illinois ©1999-2007 Gloria Brda