The mortgage closing process can be quite stressful, as anything from the appraisal falling short to major issues coming to light during the home inspection can cause the deal to crash.
If you’re nearing the finish line, chances are you won’t have problems at closing, as you will have passed all of the big hurdles. But you can still make a misstep in the final weeks, and that could result in your mortgage lender having second thoughts.
What could affect your home closing? Here, the professional team at Intercap Lending explains the top mortgage closing mistakes to avoid.
Changing Jobs During the Mortgage Process
Mortgage lenders verify everything before closing on a home, and they want to see a history of steady income. If you switch jobs, your lender could question your ability to pay on a home loan. And if the new position increases your income, it could still present a problem in terms of employment verification and, therefore, delay the mortgage closing.
Switching the Source of Your Down Payment
By now, you’ve already told your mortgage lender where the down payment funds will come from – and you don’t want to rock the boat by changing your mind. If you decide to use a recent gift or inheritance instead your original source, your mortgage lender may require additional documentation. That could put the home closing on hold, at least temporarily.
Increasing Your Credit Card Balances
Your mortgage lender will conduct a last-minute credit check in the final days before closing, and a big bump in credit card debt might cause them to reconsider your home loan. You might be planning on paying it all off at the end of the billing cycle, but your lender won’t know that – so play it safe and use a debit card for your purchases.
Opening or Closing Any Credit Accounts
Your credit score is based in part on the average age of your credit accounts, and older is most certainly better. Close an old account now, and you could derail your mortgage closing. And opening new credit accounts isn’t a good idea when you’re closing on a home, either, as applying could give your score a hit.
Not Reviewing Your Final Documents
Don’t assume your final home loan documents are exactly as they should be. Everyone makes mistakes, so you’ll need to take a careful look at every document. Aim to get the paperwork in advance to give yourself time to complete a thorough review before signing – the last thing you want is to discover an error on the day of mortgage closing, with pen in hand.
Would you like expert guidance in keeping your mortgage closing on track? If you’re planning to buy a home in northern Utah, turn to the friendly and knowledgeable mortgage brokers at Intercap Lending.
We have extensive experience with many home loan programs, and we understand what lenders look for at closing. For a free consultation to discuss mortgage closing or any other part of the home loan process, contact Intercap Lending in Orem, Utah, today.