When Closing a Mortgage, Don’t:
August 27, 2019 | Posted by: Sherry Corbitt
So, we have found a great lender for you that meets your current mortgage goals and lifestyle, the lender is satisfied with all the supporting documents, and we are broker complete. The only thing left for you is to sign with the lawyer and wait for the lawyer to advance the mortgage funds. During this time between your complete financing date and your closing date, there are a few things you should never do that could jeopardize your deal with the lender. You don’t want to do anything that could cancel your new mortgage.
What are these things that could cause the lender to decline the mortgage? Don’t:
- Change your marital status by suddenly notifying the lender and title company.
Any changes to marital status mean that there could be extra supporting documents that need to be prepared or asked for.
- Change or switch your job.
Your mortgage loan could be denied, mainly if you take a lower-paying position or move into a different field. Some lenders require you to be out of probation. All lenders require supporting employment documents. Any changes will change your debt service ratios.
- Switch banks or move your money to another institution
After the lender has verified your funds are with the institution, the money should remain there until needed for the purchase.
- Pay off or get rid of existing accounts
- Make large purchases
This goes without a doubt. Any significant purchases that require a withdrawal from your funds or increases your debt can result in you not qualifying for a loan and could lower your credit score. This means no buying that new car or boat or trailer that you’ve been eyeing.
- Co-sign new loans
When you co-sign, how the loan is paid can affect your credit score, as well as your debt service ratios. And if the person you co-signed for ever delinquents payments, you become liable to pay them.
- Pay bills late or don’t pay them at all.
If you choose not to make your payments, it will reflect on your credit bureau.
- Apply for new credit cards
Life happens. Lenders understand this for the most part. However, throughout the mortgage process, they need to be kept in the loop to any changes. While most things lenders can work with to find a solution, those listed above could cancel the deal.
If you have any questions regarding closing your mortgage, please reach out to me!
Sherry Corbitt, Mortgage Broker
