You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan you need to fund your home purchase. Plus, intentionally lying on a mortgage application is a crime.
Lenders double-check buyersâ€™ credit right before the closing to be sure their financial condition hasnâ€™t weakened. If youâ€™ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, your credit score may have dropped enough to make your lender change its mind on funding your home loan.
Although itâ€™s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing.
The lender may refuse to fund your loan if you quit or change jobs before you close the purchase. The time to take either step is after a home closing, not before.
If your contract requires you to do something before the sale, do it. If youâ€™re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, donâ€™t stall. If you have 10 days to get a home inspection, call the inspector immediately.
Get your funds together a week or so before the closing, so you donâ€™t have to ask for a delay. If youâ€™ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines seriously.
Â Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORSÂ®.