Once you have received your loan Pre-Approval or you are awaiting loan settlement, do not go and do as per the lists below, as some clients get a bit over overzealous in this period of time.
Unless the lender is aware of your change of circumstances prior to loan submission, clients and applicants should refrain from applying for further credit, but there are the few who at this time between Pre-Approval, Approval & settlement get to neglect the obvious.
GOLDEN RULE: Until the money is in your account, the deal isn’t a deal!
Making Big Purchases or Lifestyle Changes…
- DO NOT apply for ANY new Credit Cards.
- DO NOT go over your current available credit card limits, Use your credit accounts as you normally would do but stay within your credit card credit limits.
- DO NOT make any inquiries over the internet or phone for any credit card facilities.
Department Store Purchases:
- DO NOT purchase any items on interest-free terms.
- DO NOT purchase any items from your money set aside for the purchase of your home or investment property.
- DO NOT make any inquiries over the internet or phone for any interest-free facilities with a department store.
Any purchases at a department store should be done with your own additional funds that are set aside from your settlement funds or from your current credit card limits. Any inquiries for credit free or interest-free terms made in a department store will be a credit inquiry entry on your credit file which if a lender desires to check your credit file prior to the settlement will halt settlement to have your loan re-assessed or loan declined.
- DO NOT close all your bank accounts from your out-going lender to open new accounts with the new lenders, as you may still have direct debits set u with your existing out-going lender.
- DO NOT nominate an account with funds for settlement then transfer all the funds out that are required for settlement.
- DO NOT transfer funds out of the nominated Offset account into your loan account prior to settlement. if you have advised the lender to debit that account which holds the funds but then you transfer funds into your loans to save interest your lender won’t know that and may crash settlement since no funds are available to settle.
- DO NOT stop making your loan repayments just because your loans are being refinanced. continue to make the loan repayments on time. your lender will factor in the repayments made plus the interest due up until the settlement date.
- Don’t forget to pay your bills on the due dates — even the ones in dispute!
Employment and Jobs:
- DO NOT quit your employment to change employer or industries or start a new company or business.
- DO NOT switch from a salaried employment to a heavily-commissioned job.
Any change in employment from the time of a Pre-Approval to the settlement, which a lender has decided to do an employment check prior to the settlement and finds your circumstances have changed, will halt settlement to have your loan re-assessed or loan declined.
- DO NOT buy a new (or used) car.
- DO NOT trade-up if you are on any finance lease.
- DO NOT make any inquiries over the internet or phone about any car finance.
Remember, check with your credit adviser or mortgage broker if you intend to apply for any type of finance, change your circumstances in any way in the time frame between the Loan Approval and property settlement to see if you should do so.