7 Quick Reminders to help safeguard your mortgage closing

Posted by Dietchi Thomas on Monday, December 26th, 2016 at 2:22pm.

7 Quick Reminders to help safeguard your mortgage closing

7 reminders to safeguard your purchase closing

7 reminders to safeguard your purchase closing

As soon as someone is interested in buying or refinancing a residential property and you are involved as a realtor, say these reminders over and over.  The reminders are to reduce the chances of loan denial or delays in closings.  In mortgages and buying real estate, live by these rules to make your life easier!  (Remember nothing is guaranteed though in real estate and mortgages):

 

Here are the 7 reminders to safeguard your closing from disaster:

 

 

  1. Tell your borrower/buyer to get us everything we ask for yesterday (it is best to have documents reviewed prior to contract)
  2. DO NOT quit or change jobs and don’t reduce hours or type of pay
  3. DO NOT let others pull credit for new debts
  4. DO NOT pay off any collections or debts without the ok by us (your credit score could lower)
  5. DO NOT deposit cash or pay the earnest money deposit with cash.
  6. If depositing anything besides a direct deposit payroll, ask us how to document it first before it is done and documentation is not available to source it
  7. ASK us Questions. We want to help make the process easier

Details of the Do’s and Don’ts listed above:

  1. In a perfect world, we would have all documents from the buyer prior to the purchase contract.  Not having the documentation up-front can cause issues with being able to close the purchase on-time.  If we can’t get underwriting approval in time, the purchase won’t close in time
  2. This happens more than you think.  No matter if the position and pay is exactly the same as the current position, do not change jobs without speaking to us first as it could either deny and at least delay the mortgage closing
  3. First of all, you sign mortgage documentation as a borrower that you will not open any new debts in the mortgage process and secondly an additional debt could 1) lower the credit score which could deny the loan or make the rate lower 2) make the debt ratio higher which could affect the approval and possibly deny the loan and 3) delay the closing because we would need to verify the terms of the new debt.  Remember lenders will pull a new credit report just before closing to verify there are no new debts
  4. Paying off a collection too early could cause your credit score to go down in the short term believe it or not.  There are new credit score rules potentially coming in the future for mortgage credit scoring where it may not lower your scores by paying off a collection.  But for now, do not pay off a collection unless you have spoken to on of our experts
  5. Read this blog to learn more about why you shouldn’t pay cash
  6. Read this blog to learn how to document anything besides direct deposits
  7. Don’t hope that you did everything correctly, ask us questions before you deposit, consider a job change, or anything else.  Never be afraid to ask us questions as that is what we are here for is to answer your questions.

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