After months of searching, you have finally found the right community, picked out the perfect lot, selected your dream floorplan and have even been pre-approved for a loan. Now, as you wait to close on your beautiful new home it may be tempting to shop for beautiful new things to furnish it. Be cautious when doing so because buying those beautiful new things may compromise your mortgage loan.
From the time you apply for a mortgage to the day you close, your financial management decisions can impact whether you are approved or denied. Sounds scary, but with some simple financial discipline you can avoid these common mistakes.

1. Taking on new debt

Beware of making large purchases such as furniture or cars, or opening new lines of credit or loans. These can deplete the cash reserves that may be needed for your down payment or closing costs. Opening new credit cards or co-signing on a loan can cause inquiries on your credit report which can result in a lower credit score. Not to mention, the additional debt you accrue could cause you to exceed the allowable debt to income ratio required for your loan type.

2. Paying bills late or missing payments.

Late or missed payments can cause dramatic hits to your credit score. Stay safe and continue to pay your bills on time. Setting up automatic payments can help streamline this process.

3. Do not quit or change your job.

Lenders verify your ability to repay the loan based on your income which, in most cases, comes from your employment. Verification of employment can occur multiple times during the loan process. Usually, once at loan application time, then again just before closing. Consult your mortgage banker if you were planning on changing jobs, switching from salary to commission, or retiring during the loan process so that they can advise you on the effects those changes may have on your loan application.
For more tips to help you through the loan process contact your Ameris Bank mortgage banker or visit amerisbank.com.

The information voiced in this material is for general information and is not intended to provide specific advice or recommendations for any individual.