Mistakes That Could Cost You At Closing

Posted: July 27, 2010 at 10:00 am by: Leslie

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.

2 Comments »

  1. It is really necessary for someone who wants to own a house to check all what’s needed and to have figure out the possible things that might stop him from getting the house that he wants to own. Nice information you got here.

    Comment by Sandy — July 27, 2010 @ 11:20 am

  2. Speaking from personal experience: don’t rip up that cashier’s check! If you are going to closing with a cashier’s check and you find an error, whether the amount is wrong or the payee name is incorrect, whatever you do, do not rip that check up. As I have recently learned a cashier’s check is the equivalent to cash. If you dispose, lose or rip that check up the bank will have to place a stop payment on the check and make you wait 90 days before you can access your funds. The alternative is to pay a 2% fee and wha-laa all of sudden the bank will have no problem giving you your money. If it’s a substantial check, that 2% fee could be extremely steep. The best thing to do is ensure that the check is 100% accurate, otherwise, and I can’t say this enough: don’t rip up that check!

    Comment by Wendy — July 30, 2010 @ 5:13 pm

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