Ensure your closing runs smoothly by keeping clear of these roadblocks.
Leaving Your Job
Switching jobs can be a deal-breaker during the mortgage loan process, as most times we need a two-year history of your employment to prove that you have a steady job and will be able to make your monthly mortgage payments. Also, make sure not to make a switch from a salaried position to a commissioned job, as your initial compensation was what you were approved for, and any changes to how you receive your salary can change how much you are qualified for in your loan and cause a delay with your closing.
Charging Up a Storm
Applying for a new credit card or large loan, such as a car loan, can cause your current mortgage loan to stall. Underwriters re-check your credit right before closing, and any significant changes that show up since the initial credit check will certainly delay your closing or could even nullify your loan altogether. It’s advised not to run up your credit cards for anything – including furniture, appliances or any other household items that you may want to purchase for a new home, as it could adversely impact your debt-to-income ratio (DTI). A debt-to-income ratio is the percentage of your monthly gross income that goes toward your payable debts. Even something as simple as applying for a department store credit card in order to get a percentage of money off a purchase can hurt.
Going on a vacation with no access to phones or internet or becoming unreachable during your mortgage loan process is not a good idea. Your loan officer may need to get in touch with you for more information and any delays can push back your closing date. Make sure and answer any calls or emails as soon as possible to make sure everything on your end is being taken care of.