Once you’ve found the perfect home with the help of your Des Moines realtor, you will most likely need to find your preferred lender and apply for a mortgage. While the excitement to furnish your new home and shop for other home goods might be high, it’s important to keep a few things in mind and always talk to your lender before making any big financial decisions. 

Here’s a list of the things you shouldn’t do after applying for a mortgage and before closing on your new home. 

What Not to Do After Applying for a Mortgage

1. Don’t apply for new credit. When your credit report is run by multiple financial channels (mortgage, credit card, car loan, etc.), it will affect your credit score. A possible lower score will affect your interest rate and even your eligibility for a loan. 
2. Don’t make any substantial purchases. New monthly bills means more debt, and more debt will lead to a higher debt-to-income ratio. A higher ratio may mean you no longer qualify for the loan. 
3. Don’t deposit cash into your bank account. Lenders need to source the money in your account, and cash isn’t easily trackable. Before you deposit any amount of cash into your accounts, contact your lender and discuss the right way to document your transactions.
4. Don’t switch bank accounts. Similarly to number three, lenders need to source the money in your bank account. If you switch accounts, this becomes more difficult. Before you transfer any money to a new account, speak with your loan officer. 
5. Don’t close any credit accounts. A large part of your credit score is the length and depth of your credit history and your total usage of credit versus available credit. Closing accounts has a negative impact on both of those. 
6. Don’t co-sign any loans. When you co-sign a loan, you essentially become financially responsible for that loan. Even though you are not making the payments, your lender will still count the new debt against you.
7. Don’t change jobs. While this might be out of your control, it’s best to try not to switch jobs during the loan approval process. A career change might mean revisions to the amount you're approved to borrow.
8. Don’t miss any payments. Payment history is crucial to your credit score, and late payments on credit accounts might affect your interest rate and eligibility for the loan. 
   

Of course, none of this matters if you can’t find the perfect home for the right price! For help buying a home in Central Iowa, reach out to the real estate experts at the Knickerbocker Real Estate Team today.