The main goal of any mortgage lender is that your home buying experience is stress free, especially on the much-anticipated day your loan closes. Specific lending guidelines must be adhered to in order to have that trouble-free closing.
Here are 10 important tips to remember as your closing date approaches:
1. No new inquiries on your credit report – Inquiries indicate new credit, this includes credit card applications.
2. Do not incur more debt – Taking on any amount of new debt can change your credit score and debt-to-income ratio.
3. No late payments on any accounts – Pay extra attention to your bills and automatic payments, making sure everything is paid on time.
4. Do not pay off collections or charge off accounts – Paying off a collection can actually drop your credit score. Your mortgage lender will let you know if payment is required for approval.
5. Do not consolidate or close credit cards – Consolidating or closing your credit cards could change your credit score.
6. Do not dispute any item on your credit report – Mortgage guidelines can now require disputed accounts be resolved before closing as they are not included in your credit score.
7. No large deposits other than payroll – All deposits other than payroll must be documented and proven acceptable sources for your down payment. Reach out to your local lender if you have any questions!
8. Do not make any large cash purchases – Making large purchases can lower your verified bank balance and delay your closing.
9. No increases in credit cards or lines of credit balances – While seemingly harmless, increasing your credit balances can lead to an increase in your minimum monthly debt payment.
10. Do not change jobs – A lender wants to ensure you have stable income and employment, and that you can afford to repay your mortgage. Lenders are required to check employment ten days prior to closing. Notify your mortgage lender in advance if you do plan on changing jobs.
Our mortgage lenders are readily available to help you with all your mortgage closing questions. We are here to help you navigate the entire home buying process with ease and confidence. Contact us today to learn more!
