Buying a Home? Don’t Make These Money Mistakes

You were pre-approved for a mortgage. You made an offer. It was accepted. You’re in the clear… right?

Wrong. There are actually a number of financial mistakes you can make between your offer being accepted and closing on your home that could cause your mortgage to get denied, and cost you your home.

So what, exactly, are those mistakes?

A recent article from realtor.com outlined financial moves that could jeopardize your mortgage approval, including:

• Taking a leave of absence from work. Lenders want to know that you’re capable of paying back your loan, so they want to see that you have stable employment. Taking a leave of absence, even for a legitimate reason, could cause your mortgage to be delayed or denied. Unless it’s absolutely unavoidable, wait until after you’ve closed to take any sort of leave.
• Taking a new job. Again, job stability is important to lenders, so taking a new job — even if it’s a higher paying job — is a major no-no during the homebuying process. Wait until after you’ve bought your home to start looking for new opportunities, and if you receive an offer on a job you’re excited about, ask if you can push your start date until after your home purchase is finalized, and don’t leave your current job until then.
• Overspending. When you buy a new home, there are probably lots of other things you’ll want or need to buy, like furniture. But taking on new debt can change your debt ratio, which could ultimately change your interest rate and increase your payments, or even make you ineligible for your loan altogether. Save the shopping sprees for after you’ve officially purchased the home.