4 ways buyers can mess up a loan approval
A homebuyer has been approved for a mortgage loan, and both buyer and Realtor expect to be at the closing table soon. However, buyers sometimes do things that jeopardize the loan, and lenders sometimes rescind a loan offer shortly before a scheduled closing.
â€¢ Making a big purchase. Big purchases, such as a new car or furniture, can change the buyerâ€™s debt-to-income ratio that the lender used to initially approve the buyerâ€™s home loan.
â€¢ Opening new credit. Buyers should avoid new credit card applications between approval and closing.
â€¢ Missing payments. Even bills in dispute should be paid on time between loan approval and closing.
â€¢ Cashing out. Avoid transferring large sums of money between bank accounts or making undocumented deposits â€“ both could send up â€œred flagsâ€ to a lender.
Source: â€œHow to Keep Your Mortgage Approval Approved,â€ Realty Times (Jan. 14, 2013)
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