1) Open New Lines of Credit | Lenders must go by strict debt-to-income ratio requirements. If you add a new car payment or credit card payment to the mix after you have been pre-approved, you debt-to-income ratios may now be too high to qualify for the proposed housing payment.
2) Run Up Balances on Current Credit Cards | Even if you don’t open new lines of credit, charging a substantial amount on a current card will raise the minimum monthly payment on that card your lender is using for financing. Again, this make your debt-to-income ratios out of whack.
3) Spend Down Payment Funds | Even if your lender verified down payment funds prior to your pre-approval, if your balance decreases to less than what you will need at closing and your lender requires new bank statements, this could cause a major delay in your closing date. If you’re closing on a short sale with a hard deadline, you could end up losing the house if you cannot close in time and aren’t able to get an extension.
4) Lose or Switch Jobs | Not much explanation needed here. If your income changes, closing on your house isn’t going to happen unless you have a co-borrower who can carry the payment on his or her own.
5) Make a Late Payment on Your Credit Report | If your credit score is barely meeting the minimum reuirement, one late payment could knock you out of the qualifying range. If your credit score expires before closing and your lender needs to repull credit, then you would be in trouble if this has happened to you.
6) Failure To Say You Are or or Not Paying Alimony or Child Support To Your Lender | This information is important and will affect the amount for which you qualify. If it comes up too late in the process, there’s a chance you could lose the house, so please it's important to to tell your lender, even if he or she doesn’t ask.
7) Failure To Say You Are Purchasing a Condo | If you are purchasing a condo, the lender must factor in condo association dues, which can be very pricey. If your lender isn’t factoring a cushion for this into your pre-approval, you may find out that your debt-to-income ratios are too high once you are already under contract.
8) Getting a 10 Minute Pre-approval | Yes, I know you’re busy, but getting a pre-approval shouldn’t be a 10 minute process. Getting a mortgage loan is very complicated and your lender should spend time interviewing you, learning about your employment history, and reviewing the standard documents required for a mortgage pre-approval. Just because you are supposed to receive court-ordered child support doesn’t make that money qualifying income. A lender must be able to show a history of receiving these payments on time. If not, the underwriter will not allow us to use the income.
9) Notify your Lender Upfront if there has been an Employment Gap | A lender should ask for your two-year work history upfront, and, if a large employment gap arises that your lender was unaware of, you could have issues if you don’t have a good letter of explanation.
10) Get Your Documents to Your Lender - Your lender may ask you for documentation several times throughout the process–in order to make sure he or she can submit your story to underwriting in a timely matter and close you on time, you must be available via phone and email to respond to these requests in a timely manner. If you aren’t, your loan won’t make it to final approval, and you will not be able to close on your home.
How Do You Make Sure This Doesn’t Happen To You?
How can you be sure you won’t ruin your own chances of closing on your dream home? Make sure you speak with a mortgage advisor who is knowledgeable, skilled, and thorough enough to make sure you’re not scaring underwriters away with your credit history, bank statements, and employment history. A good loan officer will not conduct a 10 minute pre-approval or send you out to search for home without explaining closing costs and how to get to the closing table in a timely manner.
I know this information will be helpful to you. Don't Delay Call Today
I can give you a list of lenders that can provide exceptional service for the type of housing you are looking for. Looking forward to working with you to get you into your next New Home.
Rose Mary Justice 423 258 4830 Cell
Elite Realty Group 423 307 8566 Office
Licensed in Tn
Equal Housing Opportunity