For most, the home buying process can be a stressful time, no matter how organized you think you are. Between finding the perfect home, getting financing, dealing with appraisals and inspections and finally closing on your new home, unexpected surprises are almost always inevitable.
After recent blows taken by the mortgage industry, lenders have been pressured to enforce stricter rules when in comes to providing loans to homebuyers. For example, Fannie Mae’s Loan Quality Initiative, which went into effect June 1, now requires lenders to track any changes to a borrower’s financial situation between applying and closing. No longer does pre-approval mean a borrower is definitely approved.
To avoid causing delays or changes to your mortgage closing, Bankrate.com has come up with a couple things borrowers should stay away from in the days or weeks before closing.
- Getting a new credit card or auto loan
- Charging up credit cards
- Changing jobs
Because mortgage approval is based on a debt-to-income ratio, any changes affecting a borrower’s debt or income before closing could potentially harm a closing or even give a lender reason to turn down the borrower for a loan. To find more on why these mistakes could cost you your mortgage, visit Bankrate.com.