You might think that once you’ve been approved for a loan that the end is finally in sight… and it is! But there are things that could still affect your closing and make the deal fall through. Because of this, it’s helpful to know what not to do when you’re in the process of getting a loan.
Assets and Down Payment Funds
Funds for closing will need to be verified. Make sure your down payment and any other funds needed to close are in your account 60 days prior to closing or have the proper paper trail to trace the funds back to the original source. It helps with your image as a stable candidate, and saves you from having to explain how all that money came out of nowhere and popped into your account the day before closing. If you’re ever planning on moving money around prior to or during closing, make sure to keep your Loan Officer in the loop.
Increasing your financial obligations
Your lender will be keeping an eye on your financial condition throughout the process, and any significant changes in your financial obligations will require the lender to re-assess your situation. Hold off until after you close – and better yet, think about saving that money to invest in your new home, or save for emergencies.
Remember that when lenders are considering you as a viable loan candidate, they look at your employment history. Switching your job at the last minute before you complete your closing may present additional problems and may delay your closing. Even if you leave for a higher salary, you’ll want to wait to make the switch.
Remember, we’re not saying you can’t do these things – we’re just saying be smart and wait until after closing, provided you can handle the added debt.