Four things not to do between loan approval and closing

You assembled your documentation, filled out the mortgage application and received approval to proceed with your purchase. It’s time to celebrate, right?

Not quite. Your lender will recheck your credit right before closing, and certain behaviors might make him question your creditworthiness. Here are four mistakes to avoid between loan approval and closing:

1. You get a new job

Lenders like to see consistency, and changing employers could mean delays due to employment and salary verifications. That being said, if a huge career opportunity presents itself, have a conversation with your lender to avoid hiccups.

2. You buy a car

You’re no doubt aware that your debt-to-income ratio plays an important factor when being considered for a loan. If you add to your debt, you risk exceeding the ratio that your lender finds acceptable. Even if your car dies, it might be a good move to take the bus for the two weeks until closing instead of shelling out for a new ride.

3. You open or close credit accounts

Similar to taking on new debt, the mere act of opening a new credit account can harm your mortgage approval. The credit inquiry necessary for the new account will ding your credit score a few points, and the lender might wonder just how much you plan on spending with that new account. Even closing a credit account, which seems a positive step, can lower your credit score because your overall available credit has lessened.

4. You forget to pay the electric bill

Does this seem unlikely? Well, consider that instead of enjoying your usual household routine, you’re figuring out how to move your family and all your worldly possessions — which box has the checkbook?
Part of the mortgage process is a final check to ensure you can afford the loan. Neither you nor the lender wants the payments to be a struggle, so don’t give the lender any reason to doubt your creditworthiness.

Avoid these mistakes and preserve your attractive credit profile.