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Once You’re Approved: Do’s and Don’ts Feature Image
Posted on 06/28/2121 5 minute read

Once You’re Approved: Do’s and Don’ts


Congratulations, you’ve been approved for a mortgage! While now is a time to celebrate, it’s also a time to be cautious and remain financially stable. You’ve been approved — this is great news. 

However, if at any point between now and closing day you face unexpected life changes, new debts, or large purchases, you are putting your closing at risk. 

Your mortgage loan officer can review your finances at any point. If your financial outlook has changed, your approval may need to be re-evaluated. Here are the dos and don’ts after you are approved for a mortgage to keep your approval safe.

1. Don’t open or close any accounts

Your credit score is based on your payment history, credit card usage and age, total accounts, new accounts, and hard inquiries. If you open or close any accounts, your score will change. 

Also, your loan officer is tracking your assets, so if you open or change any bank accounts, it can become confusing or suspicious.

2. Do pay all bills on time

Late payments on rent, utilities, credit cards, or loans can immediately impact your approval. At this point, you still need to be proving to your loan officer that you will be able to make your mortgage payments on time.

3. Don’t buy a car

Huge purchases can affect factors such as your credit score and debt, but they also will raise a flag on whether you dipped into the savings some loans are required to have for approval.

4. Do ask your mortgage loan officer questions

If you’re considering any major purchases or life changes, talk to your mortgage loan officer. They are here to support you throughout the process, which includes answering your questions about your loan approval. 

It’s better to ask a lot of questions and be in close contact with your loan officer, rather than making an honest yet costly mistake that affects your approval.

5. Don’t use payment plans

When you’re preparing to buy a home, it’s exciting to think about the items you need to fill it. However, when it comes to furniture or large electronic purchases, you might be offered a deferred payment plan.

No matter when the payments are set to begin — even if it’s a year away — it will show up as debt on your credit report.

6. Do keep debt down

To get approved, you might have had to work hard to pay down all your current debts. This paid off, because you’ve been approved! Now, you have to be careful to continue paying and keeping your debt down.

7. Don’t switch jobs before talking with your loan officer

Your approval is based on your current income and job history. Even if you might be making more money at your new job, switching jobs before you close on your loan changes your situation.

If you’re thinking of a job switch or just got an amazing offer before you’re able to close, talk to your loan officer for guidance and advice.

8. Do immediately inform your loan officer of any changes

That being said, if you made any changes without consulting your loan officer first, be sure to reach out and see if it will affect your approval and if any additional documents or requirements are needed.

9. Don’t run into overdraft issues with your bank accounts

Be extra careful if you have bills being paid automatically and cash leaving your accounts without your constant monitoring. 

Even if you thought you had enough to cover the payments, or you often transfer money from your savings to a checking account, a simple overdraft mistake can make you look like a risk.

10. Do have requested documents on hand

Keep all documentation detailing your income or lifestyle changes, including deposits, statements, payments, or any other status documentation your loan officer may need to see. 

Especially if you’re not used to tracking all your financial moves, it’s important to get into the habit while you’re applying, have been approved, and are waiting to close on a mortgage loan. This will make the process much more straightforward.

11. Don’t make large deposits

Large deposits will leave your loan officer wondering if the money was borrowed. And if it’s a cash deposit, they won’t be able to see where it came from. If you are going to make a large deposit, discuss with your loan officer what to do and how to document it.

12. Do protect your savings

Whether you had to establish a savings plan to get approved in the first place, or you’re preparing for your closing costs or down payment, make sure this account is protected and you are sticking to your budget.

Read all documentation from your loan officer thoroughly to ensure you are aware of all the costs due at closing, and make sure to ask any questions if there’s something you don’t understand.

Connect with a trusted loan officer today

The right mortgage loan officer for you will offer the level of support you require. It’s important to remember you’re not doing this alone. Your loan officer can offer in-depth guidance throughout the process, or provide quick, convenient assistance depending on your needs.

Your loan officer is equipped to help you understand your specific credit goals from the beginning of the process, and they can offer advice on how to maintain these goals once you reach them. This is especially important once you’ve been approved and are waiting to close on a loan. Don’t let a simple, honest mistake disrupt your loan process. With a Homefinity loan officer, you can expect consistent communication and support to ensure you will soon be in a home you love. Contact us today with questions or to get started with your own loan process.



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