Once you’ve found the perfect second home, had your appraisal and inspection done and have your financing in place, you’re in the clear, right?

Not necessarily.

There are plenty of things you can do at that point that could seriously jeopardize your financing. Here are some of them (and, if in doubt, ask your lender):

  1. Don’t change jobs. Even if you have another job in place before you leave, don’t leave your current job until you’ve closed on your mortgage.
  2. Don’t move your money or long-term investments around. Keep things the way they are until after the closing. Moving money from your savings to checking or vice versa could, at the very least, slow things down if you end up needing to re-submit paperwork with your lender.
  3. Don’t co-sign for anyone else on a loan. This shows up as a new loan or line of credit on your credit history.
  4. Don’t let anyone run your credit report again. Too many inquiries on your credit report could signal to a bank that you’re over-extending yourself, or at least trying to. Don’t let any other lenders run your credit report until after your closing.
  5. Don’t forget to lock in your interest rate. Request written confirmation of your rate prior to your closing date, so that you don’t have any surprises. Just because your financing is in place, doesn’t mean that your interest rate is locked in unless you have a guarantee – in hand, in writing.
  6. Don’t finance any other big purchases. Anything that changes the amount of debt you have or have available to you (including new credit cards) can impact whether or not you still qualify for your mortgage. Even if you don’t lose your mortgage, it could impact the rate you pay.

These tips are meant as a guide, and there are surely other things that you should be aware of when taking out a mortgage to purchase your second home. For more information, talk to your mortgage broker or loan officer.