During the home loan process, there are many factors that can affect your closing and result in a drawn-out process. For a smooth closing, it’s best to follow these tips: 

1. DON’T OPEN A CREDIT CARD 
   Do not apply for new credit of any kind; any new debt must be counted against you. 

2. DON’T CLOSE A CREDIT CARD 
   Do not close credit card accounts or consolidate debt from multiple cards to one or two; this will change your debt to income ratios. 

3. DON’T MAX OUT OR OVERDRAFT 
   Do not max out or overcharge existing credit cards; running up your credit cards is the fastest way to bring your score down.

4. DON’T CO-SIGN ANY LOANS 
   Do not co-sign on another person’s loan or change your name or address; this will raise red flags to the underwriter. 

5. DON’T MAKE ANY LARGE DEPOSITS 
   Do not deposit cash, cash deposits cannot be sourced and cannot be used as funds for closing; any large or unusual deposits must be sourced. 

6. DON’T CHANGE JOBS 
   Do not change jobs or voluntarily take a layoff or reduced hours; this could be the difference between loan approval and a denial. Please contact your loan officer before making any employment changes.

7. DON’T ACCEPT LARGE FINANCIAL GIFTS 
   Do not accept any gifts towards your down payment without talking to your loan officer first; not all loan programs accept gift funds and gifts will also have to be sourced as large deposits. 

Before you close on your mortgage, it’s critical to avoid taking steps with your finances that could derail the closing process. Making major changes to your credit or job situation can delay the closing on your house because lenders track any changes that are made by consumers after they apply for a mortgage and before it closes. It’s better to touch base with your loan officer and Realtor before making any other important financial decisions when in escrow on the house you will soon call home.