These Common Mistakes
May Impact YOUR Closing
Integrity Home Mortgage Corporation wants to make sure you have a smooth and stress free home loan settlement. Keeping this in mind, we want to make sure that you understand that making financial changes during the loan process may negatively impact your home loan closing.
These are a few tips we have to assist you in avoiding any delays in your home settlement.
NO New Purchases
Please refrain from making any new large purchases. This includes any item that will result in new monthly debt (i.e., new car or furniture for your new home). As a lender we will re-pull your credit right before settlement to make sure that you have not incurred any new monthly payments. This could result in delays in closing and in extreme cases, denial of the loan.
Charging up Credit Cards
Increasing your credit card balance can increase your debt-to-income ratio which is a factor in your mortgage loan approval. A variance in this ratio can prohibit you from purchasing or refinancing your home. Retailers often offer discounts to customers who apply for one of their credit cards. We encourage you to avoid doing this as it will show up on the summarized credit report the lender pulls before closing.
Changing Jobs
We understand that unforeseeable opportunities may arise during the loan process. If you decide to switch companies or occupations, we ask that you consult your Integrity Mortgage Loan Originator to see what impact this may have on your loan settlement. Verifying the new employment information could set back your date of settlement and impact approval.
Opening New Asset Accounts or Transferring of Funds
Review of your asset accounts will occur and any large deposits outside of payroll will require additional documentation. Many loan program guidelines will require a paper trail showing the source of the funds. An example of this would be large cash deposit that can be from the sale of personal property. This will result in further documentation required for closing.
Types of Credit
A variety of credit indicates the borrower can handle all sorts of credit types. Examples of of different types would be a credit card which is a revolving credit or credit that has no preconceived end of time for repayment. Another type is installment payments which is a loan where a set monthly payment and time of payoff it predetermined.