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Pamela Shemet's Blog

By Pamela Shemet | Agent in Crystal River, FL

4 ways buyers can mess up a loan approval

A homebuyer has been approved for a mortgage loan, and both buyer and Realtor expect to be at the closing table soon. However, buyers sometimes do things that jeopardize the loan, and lenders sometimes rescind a loan offer shortly before a scheduled closing.

Common mistakes

• Making a big purchase. Big purchases, such as a new car or furniture, can change the buyer’s debt-to-income ratio that the lender used to initially approve the buyer’s home loan.
• Opening new credit. Buyers should avoid new credit card applications between approval and closing.
• Missing payments. Even bills in dispute should be paid on time between loan approval and closing.
• Cashing out. Avoid transferring large sums of money between bank accounts or making undocumented deposits – both could send up “red flags” to a lender.

Source: “How to Keep Your Mortgage Approval Approved,” Realty Times (Jan. 14, 2013)

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