At Blackhawk Bank, our Mortgage Planners want the home buying experience to be stress free, especially on the much-anticipated day that your loan closes. Specific lending guidelines must be adhered to in order to have that trouble-free closing. Here are some 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. Lenders are required to check your credit ten days prior to closing, and new inquiries could change your score.
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 Planner 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. Talk to your lender to learn more!
8. Do not make any large cash purchases
Making large purchases can result in lowering 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 loan officer if you do plan on changing jobs so that you can plan ahead.
Our Mortgage Planners are readily available to help you with all your mortgage closing questions. We want to help you navigate the entire home buying process with ease and confidence. Contact us today to learn more!
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