6 things you don’t want to do after you apply for a mortgage

stopOnce your offer has been accepted and you are in the process of qualifying for your mortgage on the Outer Banks, there are things you don’t do.

Period. Nada. No. Nope. Never Never Ever EVER do.


Doing these things could STOP you for buying a home in on the Outer Banks:


  • Don’t make large purchases.  When you are buying a home you are going to be bringing in new debt.  However, after applying for a home don’t go out and buy a new car or furniture, this could raise you debt ratio and make it riskier for the loan company to lend to you.  Sometimes after doing this, the previously qualified buyer is no longer able to qualify.
  • Do Not Change your bank accounts.  If you have had an account for a while it is easier foe lenders to track and source your assets.  Before you even think to transfer money from one account to the other you should talk with you loan officer.
  • Do not deposit cash into you bank account.  Cash is not very traceable and lenders need to be able to source your income.  Small deposits, which can be explained, are fine, but getting a large lump sum as a gift is not.  Discuss the right way of tracking your assets with your loan officer.
  • Don’t co-sign other loans for anyone.  Once you have co-signed on a loan you are now obligated to that loan.  With the obligation comes a higher ratio.  Lenders will be counting the payment against you even if you tell them you won’t be.
  • Don’t close any credit accounts.  Many clients believe that by closing out credit accounts makes them less risky and that they will have a better chance of being approved for the loan. This is INCORRECT.  The majority of your score is the length and depth of your credit history.  Closing these accounts can have a negative impact on your credit score.
  • Do not apply for new credit accounts. Whether it is a new car or a credit card once you have your credit run by multiple financial companies, this effect your FICO score.  Your interest rate is based on your credit score. The lower the score the higher the rate or you may not be eligible for the loan.

Once you apply for a mortgage for you home purchase on the Outer Banks, make sure you talk with me or your loan officer before you decide to do anything else financially.  Even the slightest change may affect your ability to buy your home – or not buy your home.

Call me today to make sure you know what to do and when to do it when buying your Outer Banks home!

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