You’ve already got your pre-approval, found your dream home and you’re waiting for your closing date. Now you’ve got a whole other list of to-do’s while waiting for the keys to be yours. Part of that is making sure you keep your home loan on track to close. There are several things that lenders see as worrisome for them to finalize the loan and these are 4 of the key steps to assure your home loan closes smoothly.
Keep your credit score in check
This is super critical to maintain at all times, but very important before and during the home buying process. If you have had issues with your credit score, I highly suggest getting those issues cleaned up. When waiting for your loan to close, make sure to not miss any payments on your credit cards or loans, because lenders will be able to see this reflected in your credit report before closing.
Additionally, I highly recommend waiting to open any additional credit cards or loans of any sort until the home closes. A big pull on your credit check can be a red flag to a lender about to loan you a big chunk of money. Lenders want to be certain that the amount they are lending will not be an issue when making payments. If you go off and get a large line of credit, a car loan, or take a large chunk of our your bank account it can show a lender you may be stretching your limits on what you can spend. Safest way to keep your closing date in check is to wait until closing date to open up a new credit card.
Hold off on big purchases
It may be tempting to start outfitting your new home with new furniture and appliances, but when waiting for the home to close it’s best to wait to buy those big items. Lenders want to see the money available in your bank account, and to not worry about a large transaction. Even if you know you can afford the amount, I suggest waiting to assure you have no issues come time to close.
Job Transitions
Lenders typically like to see a stable income to prove you will have no issues making payments on the mortgage. If you have a job loss, change in careers, opening a business or change in the type of income you will be receiving (commission vs. salaried) can prevent a lender from finalizing the loan amount. Lenders often confirm employment the day of or before closing, so if you do have a change in your job, it is important to speak with your loan officer.
Keep all financial documents
When moving, it is important to know and have access to your important financial and personal documents. Lenders can request additional information, and if you’ve already stored it away in a U-Haul or a storage unit, it can be a big hassle to get that last piece of paperwork to close on the home.
Closing on a home loan is an exciting and can be overwhelming. Following these 4 tips, will help make sure you’re smooth sailing to buying the home of your dreams.
If you want to know more about the real estate market in North Texas, I would love to hear from you. Let me know if you are looking to buy or sell in North Texas or if you want to know more about the North Texas market.
