4 Ways Buyers Can Mess Up a Loan Approval
January 15, 2013
Your home buyers have gotten approved for a mortgage and now they’re just waiting to make it to the closing table. Make sure they don’t throw their loan approval into jeopardy by making one of these common mistakes:
- Making a big purchase: Tell your buyers to avoid making major purchases, like buying a new car or furniture, until after they close on the home. Big purchases could change the buyer’s debt-to-income ratio that the lender used to approve the buyer’s home loan and could throw the approval into jeopardy.
- Opening new credit: Inform your buyers that now isn’t the time to open up any new credit cards.
- Missing any payments: Home buyers need to be extra vigilant about paying all their bills on time, even if they’re disputing one.
- Cashing out: Avoid any transfers of large sums of money between your bank accounts or making any undocumented deposits — both of which could send up “red flags” to your buyer's lender.
Source: “How to Keep Your Mortgage Approval Approved,” Realty Times (Jan. 14, 2013)
Updated: February 19, 2019