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    Can I buy a refrigerator when qualifying for a home loan in Northern Utah?

    Spring Bengtzen Realty GroupOnce your offer has been accepted on your Northern Utah home and you are in the process of qualifying for your mortgage, there are things you really shouldn’t do.Doing any of the following could STOP you for buying your home:

    • Don’t make large purchases.
      After applying for a home don’t go out and buy a new car, appliances or furniture, even though VERY tempting!! This could raise you debt ratio and make you a higher lending risk.  Sometimes after a large purchase, the previously qualified buyer is no longer able to qualify for their home mortgage.
    • Do Not Change bank accounts.
      If you have had an account for a while it is easier foe lenders to track and source your assets.  Before considering any transfer of money from one account to the other before talking with you loan officer.
    • Do not deposit cash into you bank account.
      Cash is not traceable and lenders need to be able to source your income.  Small deposits, which can be explained, are fine, but getting a large lump sum as a gift is not.  Call your loan officer if you are going to receive a large gift.
    • Don’t co-sign other loans for anyone.
      Once you have co-signed on a loan you are now obligated to that loan which increases your loan ratio.  Lenders will see this as your debt, even if it’s not “actually” yours.
    • Don’t close any credit accounts.
      It is INCORRECT to believe closing out credit accounts is better for receive loan approval.  The majority of your score is the length and depth of your total and on-going credit history.  Closing accounts has a negative impact on your credit score.
    • Do not apply for new credit or credit cards.
      Whether it is a new car or a credit card once you have your credit run by multiple financial companies, this effect your FICO score.  Your interest rate is based on your credit score. The lower the score the higher the rate or you may not be eligible for the loan.

    Once you apply for a mortgage, make sure you talk with the Spring Bengtzen Realty Group or your loan officer before you decide to do anything financially.  Even the slightest change may affect your ability to buy your home – or not buy your home.

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