10 Common Life Events That Can Keep Your Loan From Closing on Time
10 Common Life Events That Can Delay Your Loan Closing
Avoid These Pitfalls to Save Time and Stress
Imagine this: You’re in contract and expecting to close on your new home in 30 days. While the mortgage process can be straightforward, certain actions or changes in your financial profile can create unexpected delays or even disqualify your loan. To ensure a smooth closing, avoid these top 10 pitfalls:
Increasing Credit Card Balances or Applying for New Credit
Avoid big purchases or new credit applications (e.g., buying a car or financing home improvements). These actions can lower your credit score or impact your debt-to-income ratio, potentially disqualifying you from your loan. Lenders perform a final credit check before closing, so maintaining a stable credit profile is essential.Quitting Your Job or Changing Employment
Even a similar position with a new employer can disrupt the loan process. Lenders require stable, verifiable income and may ask for updated pay stubs. Let us know before making any job changes so we can prepare the necessary documentation.Allowing Companies to Run Your Credit
Each credit inquiry can lower your score. After applying for your mortgage, visit OptOutPrescreen.com to limit unsolicited credit offers and protect your score.Opening New Bank Accounts or Making Unusual Deposits/Transfers
Lenders require two months of consistent bank statements. Large deposits, unusual transfers, or new accounts can trigger requests for additional documentation, delaying the process. Notify us in advance if these changes are unavoidable.Shifting Credit Card Balances (e.g., 0% Teaser Rates)
Transferring debt to another card generates a credit inquiry, which can lower your score and impact your loan terms.Getting Married, Changing Your Name, or Taking Maternity Leave
Life events like a name change or leave of absence can complicate the loan process by affecting documentation, income verification, or tax records. Let us know in advance so we can proactively address these changes.Getting Divorced
A divorce during the home-buying process can impact marital assets and ownership rights. Notify us immediately so we can help navigate potential legal and financial hurdles.Traveling Abroad or Going “Off the Grid”
Timely responses are crucial during the loan process. If you’re traveling, let us know so we can arrange for document signing at a U.S. embassy or coordinate a plan to keep you on track.Depositing or Moving Large Sums of Money
Windfalls (e.g., inheritance or settlements) must be documented. Lenders require clear explanations for large deposits. Prepare to provide proof of origin to avoid delays.Waiting to Ask Questions
If you’re unsure about any aspect of the process, don’t hesitate to call. A quick conversation can prevent costly mistakes and keep your loan on track.
Final Thoughts
The mortgage process works best when there’s clear and open communication between you and your advisor. With my experience and resources, I’ll ensure your closing is seamless and stress-free.
Have questions? Let’s connect—I’m here to help!
