DO NOT make these mistakes while under contract with your new home.

Purchasing a new home in Texas is an exciting venture, but the period after your offer is accepted is fraught with potential missteps that can jeopardize your purchase. As you prepare for closing, being aware of key financial and personal decisions that could impact your mortgage approval is crucial. Here are the vital points every potential homeowner should be aware of:

1. Avoid Making Large Purchases & Limit Credit Card Spending: The impulse to buy furniture or appliances for your new home is understandable, but taking on new debt can change your debt-to-income ratio. Lenders scrutinize this ratio closely, and a significant purchase could negatively affect your mortgage approval. It’s wise to delay any large expenditures until after the closing process is finalized.

2. Maintain Job Stability: Lenders look for consistency in your employment history as a sign of financial stability. Changing jobs during the mortgage approval process introduces uncertainty and can be viewed as a risk by lenders. If you must change jobs, communicate with your lender immediately to discuss how this might affect your loan application.

3. Respond Promptly to Lender Requests: During the underwriting process, your lender might ask for additional documentation or need clarification on certain points. Failing to respond quickly to these requests can cause delays in your loan approval or, in some cases, result in denial. Keeping an open line of communication with your lender is critical to a smooth approval process.

4. Refrain from Co-Signing Loans: While under contract, co-signing another loan can significantly affect your credit and debt-to-income ratio. This action increases your financial obligations, potentially impacting your mortgage application. It’s best to avoid any financial decisions that could change your lending profile until after your home purchase is complete.

By focusing on these critical areas, you can navigate the period between contract and closing with confidence, avoiding common pitfalls that could hinder your journey to homeownership in Texas. Remember, this time is pivotal in ensuring your financial stability and securing your future home. Making informed decisions and communicating effectively with your lender can make all the difference in achieving a successful home purchase.