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You’ve found the perfect home, your offer is accepted, and closing day is in sight. Then, out of nowhere, your mortgage approval falls through. It’s not just frustrating, it’s devastating. And in most cases, it could have been avoided. I sat down with Brian Shahwan, a mortgage expert from William Raveis Mortgage, to give you crucial tips before buying a home. We went over the three biggest missteps that sabotage mortgage approvals and exactly how to steer clear of them. Here’s what you need to know:
1. Changing jobs before closing is riskier than you think. That promotion or career switch might seem like a smart move, but timing matters. Mortgage lenders need proof of stable income, and a sudden job change, even for a higher salary, can freeze your loan process. One client nearly lost their dream home after switching companies mid-application, delaying closing by weeks. Before making any career moves, talk to your loan officer. A quick conversation could save your deal.
2. Paying off debt the wrong way can tank your credit score. Many buyers assume wiping out a credit card balance will help their approval chances. But when you close the account afterward, that’s where things go wrong. One buyer’s credit score dropped 40 points after closing a paid-off card, pushing their interest rate higher. Instead of guessing, ask your lender for a payoff strategy. Often, keeping accounts open with low balances works in your favor.
3. Opening new credit even for a “great deal” can kill your loan. Furniture stores, car dealerships, and even cell phone providers love offering “instant financing.” But every new credit inquiry during the mortgage process is a gamble. One couple’s approval was denied days before closing because they financed a new mattress. Unless it’s an emergency, wait until after closing to open any new lines of credit.
Mortgage approvals hinge on stability, and even small financial changes can have significant consequences. The best move is to get preapproved early, stay in close contact with your lender, and never buy big-ticket purchases without checking first.
If you have questions about mortgage, feel free to reach out to Brian Shahwan at (302) 293-7432 or brian.shahwan@raveis.com. And if you’re thinking about buying or selling, or have any questions about real estate, feel free to call or text me at (914) 548-6179 or ted.holmes@raveis.com. You can also visit theholmesteamny.com to explore your options.
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Let’s Explore Your Selling Options. I’ll help you sell your home at the price and terms you want. Free Selling Strategy Call
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