Anybody that purchases a home is well aware of their closing date. This is the date that is agreed upon by the seller and buyer for when the final paperwork will be signed and the keys to the home handed over. However, there are things that can go wrong that will cause delays, potentially pushing your closing date and messing up your moving schedule. Here are some times to ensure that your mortgage is approved in time to meet your closing date.
Work With A Responsive Lender
There is a lot that you can learn about a lender when you are getting the initial pre-approval for a home loan. Are they easy to contact? Are they responsive to responding to your questions? Did you get a quick response for your initial approval? If your answer to these questions is no then you may have problems with this lender when getting your actual mortgage approved.
You will want to work with several lenders before you make a final selection. It may be best to go not with the lender that has the best interest rate, but with the one that seems like they will close on the home in time.
Don't Make Big Purchases
Many people don't realize that your mortgage lender will check your credit multiple times through the approval process. This can lead to people making financial decisions that cause problems with getting their mortgage approved.
A common problem is people making big purchases in anticipation of getting their new home. They may feel tempted to open a credit card and take advantage of a sale at a home improvement store, or maybe taking out an auto loan to get a new car for their new commute to work. The problem with this is that your debt-to-income ratio can change, causing you to become disqualified for the loan you applied for. Lenders may also see this behavior as risky, and deny you the mortgage because of excessive spending.
It is a good idea to hold off on any big purchases until after you have closed on the home. This will prevent any delays in having the mortgage approved.
If you are worried about your mortgage not being approved on time, it is always worth working closely with your lender from the very beginning. Pick a quality lender, keep the lender updated on your closing date, and be responsive to the lender's questions as they come up.
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