Depositing large sums of money into your accounts raises a red flag for the lender. Any large deposit will have to be documented with copies of the check, deposit slips and a paper trail of where the money came from (to prove it’s not borrowed money). This will cause more work for the borrower and could cause a delay.
Similar to deposited money, transferred money requires sourcing, showing a paper trail and could cause delays. Always talk to your loan officer first in order to navigate around delays!
Applying for new credit (even if you do not obtain a new account) will lower your credit score which may result in higher interest rate and payment. If you increase your debts by obtaining new credit, you jeopardize the chances of qualifying for your new mortgage. This means no new cars, no new credit cards, no new anything until AFTER closing on your house!
Missing payments or having a delinquency on your credit report can lower your credit score dramatically, thus increasing your interest rate and payment or possibly disqualifying you for the loan, The lender may pull your credit prior to closing to verify that you haven’t missed or been late on any payments since the date of your application.
The lender will verify your employment and income prior to closingto insure that you have the ability to repay the loan. If you quit your job we won’t be able to verify your income and your loan application will be declined. This may seem like a no brainer, nut you’d be surprised how many people quit or change jobs in the middle of a purchase transaction.