Congratulations!! Your purchase agreement was accepted by the seller, now life should be easy!! Or will it? For some people the mortgage process can be very easy – or at least not awful! For others it seems like we are constantly asking for something or have a challenge we need to overcome. Some times it's not even the buyer's problem, sometimes there are things that come up on the seller's side that can affect your closing.
In order to make your life as easy as possible while waiting for closing, there are a few things you can do to help the process.
1-Failing to obtain a mortgage approval. For some people, they think they have been approved, but they may not be. The loan officer may simply have pulled credit and thought they would be ok. The more documentation you can give your loan officer, the better. I had a file today that I thought would be ok, but the borrower didn't really have the income he claimed he did. If I hadn't requested his paystubs, w-2's and tax returns, I wouldn't have known that right away. Asking about child support or business expenses that are written off on tax returns are a couple things that can come up during the loan approval process.
2 -Monitor your credit. During the loan process, your loan officer will pull your credit report. Look at it and make sure it's accurate. Make sure you make all your payments on time during the approval process and also make sure you do not apply for new credit. Remember your lender will pull a "refresh" credit report to make sure there are to any new inquiries. If there are, we will have to document any new debt.
3-Be financially conservative. Make sure you are careful with your money. Make your payments on time and do not make any large purchases. Your lender will need to verify the money you need for closing. Make sure your earnest money clears your account. Your lender will have to verify the money you need for closing,you can continue to save your money, but don't wait until the last minute to gather it all together!
4-Don't switch jobs. I have had people switch jobs during the mortgage process, it can make a difference in your closing. Try to avoid this. FHA usually requires a paystub with 30 days of earnings on it, if you are closing too soon, you will not be able to get that paystub. If you are looking for a new job and it has commission income, you will not be able to use that income. If you are not sure about something, ask your loan officer.
Any time you have questions on something, make sure you ask about it. I would rather have a client tell me what is going on and know in the beginning then to be surprised about it after the fact. Some changes are not a big deal- others may affect your mortgage approval!