Many homebuyers view the mortgage application procedure as a static action; a snapshot of their financial lives at that given moment. This is not the case. Applying for a home loan is an on-going process that takes into account everything you do up until the day of closing.
Even consumers with good credit and plenty of cash may find themselves out on the sidewalk if any last minute loan application issues arise. The following tips will help you successfully close your home mortgage.
Be Responsive to Your Home Mortgage Lender
As the borrower, you will want to make sure that you are taking the necessary steps to ensure that your home mortgage closes on time and without hassle. It’s crucial to disclose everything to your lender upfront to avoid any hiccups in the process.
Your loan officer will often want to contact you by phone or e-mail; be accessible and helpful. If you wait too long to respond to communications, it could impact your closing or create a problem with the property you want to buy.
Avoid Any Major Purchases Before Closing Your Home Loan
Making a large purchase can shift your debt-to-income ratio and may disqualify you from your current loan offer. Even just applying for a new credit card can cause problems.
Purchasing high price items such as appliances or taking out a car loan can ruin your chances at closing your home mortgage. Don’t put yourself a position where you could end up losing your dream home.
Avoid Career Moves Before Your Home Loan is Closed
Keeping a consistent job and income history is important. One of the biggest factors that home mortgage companies consider is a borrower’s length of current employment. At the very least, changing jobs initiates the need for more paperwork and may delay the close of your home mortgage.
Prepare for a Last Minute Credit Check
It’s not uncommon for lenders to pull your credit report for a second time to see if anything has changed before you close your home mortgage. Paying off an existing loan or opening a new bank account may present problems for you and your loan officer.
You don’t want to jeopardize your interest rate or the entire deal altogether. If you are planning on making any financial decisions, consult your lender to find out what the impact will be on your process.
If you have more questions about closing your home mortgage, contact a Cornerstone loan officer. They have an average of over 15 years of experience in the mortgage industry and are ready to help you today.