Congratulations! You have worked with your Certified Mortgage Planner and structured a refinance which will enhance your financial wealth building goals.  You have submitted the supporting loan documentation and with the closing is only weeks away, you’re feeling pretty good.

It's smooth sailing from here, right? Probably. However, more than one potential borrower has had the wind knocked out of his sails at some point in a loan transaction by the mis-steps described below. If at all possible, steer clear of the following "NO-NOs" until AFTER you have gone to closing.

• Do not take on new debt. The temptation is strong. There are so many big purchases that people want to make in connection with a new loan: appliances, window treatments, furniture, etc. When you add to this the fact that, today, everyone offers easy terms and no money down—well, why not just do it? Answer: because you will change what the mortgage industry calls your "debt-to-income ratios" (the relationship of your income to your debt).

• Do not change jobs. If at all possible, try not to make a career move during the time between your mortgage application and the closing. But, you ask, "What if it’s a BETTER job, for MORE money, in a DIFFERENT field?" Still, try and wait until AFTER closing. One of the factors consider is length of present employment; they are partial to stability. At the very least, changing jobs initiates the need for more paperwork, and may delay your closing. Changing Jobs.mht

• Don't disregard your lenders requirements.  You may have been approved for the loan, but your work with the lender is far from over. In order to process your loan, you need to meet certain requirements.  It is up to you to provide any needed information as soon as possible. Failure to submit certain qualifying documents could cause you to delay your loan. Mortgage Planning Process.mht

• Do not lease a new car. This should go under the general heading of "no new debt." It is highlighted here because, for some strange reason, many buyers do run right out and lease a new car during the time between mortgage application and closing! As with any debt, this will change your "debt-to-income ratios" and may cause you not to qualify for your mortgage.  

• Don't make an expensive purchase. It may be tempting to order that new sofa for your soon-to-be living room, but its best to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewelry, or vacations until after the closing. Financing that furniture with a store credit card or even one of your own credit cards could jeopardize your credit worthiness during the time it means the most. Using cash to purchase big items can also create a problem because many banks take into consideration your cash reserve when approving your mortgage.

In short, do nothing that negatively impacts your ability to qualify for your mortgage loan, or initiates a new round of paperwork. If you have any doubts about doing something that may affect your ability to qualify for your mortgage loan, please consult your lmortgage planner before you do it.

These suggestions are merely that—suggestions. No one is saying, flat out, that bad things will necessarily follow if you do any of the above. They are offered as cautions. Many borrowers seem to view the mortgage application procedure as a static action, a snap shot of their financial lives at a given moment in time. It’s not. It’s an on-going process that takes into account everything you do right up until the day of closing.