So you just met with your Mortgage Loan Officer and they indicated that your credit looks good,your debt to income ratios are okay and your asset statements validate that you have the necessary funds to bring to closing. All that is needed now is the appraisal to come back with a certain minimum number and we can submit to Underwriting for approval.
Most people feel like their work is done and all they have to do is prepare to move. Don't let your guard down. You are still under the credit microscope until the time you sign your closing documents.
Here are 4 potential pitfalls that borrowers don't consider as an issue, but they are.
• Don't change employment - Even if you are 20 years in the same field and just moved to the employer across the street, unless you have a employment contract the lender will want 30 days of pay from this employer before it will count. They will request a verification of employment again within 5 days of the closing.
• Late payments - Do not be late on any of your current loan payments. This could sabotage your approval.
• Do Not add any additional debt. If you do, you will have to go through the Underwriting process again and will have to qualify with your new debt to income ratio. If you do not qualify, your approval will be rescinded.
• Do Not have any new inquires on your credit report This could delay the closing or potientially change your approval. Lenders are looking for new debt. 90 days same as cash is still debt.
Lenders now will do what is called a "Soft Pull" on your credit report within 10 days of closing. any of the last 3 above that changes, will need to be addressed. The stories I could tell of the scheduled closings that did not happen because someone wasn't thinking. So just wait until you have closed to buy the new furniture.
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