Congratulations! You’ve found the home of your dreams and there’s a light at the end of the tunnel with a closing date just around the corner. Although this is an incredibly exciting time in your life, there are a few things you should keep in mind during the closing process.
We sat down with Emily McVay from Homestead Funding to further understand the home closing process and she provided several key “pitfalls” buyers often forget when waiting for closing day; often costing them their mortgage and ultimately their dream home.
- Do not change jobs. According to Emily, “Change in job status will cause your file to be re-underwritten and reconsidered. This may cause a delay with your loan process or possible denial of your loan application.”
- Do not use charge cards excessively or make late payments on any accounts. Often times, in order to save the cash reserves buyers have set aside for closing costs, they resort to “living” on their credit cards. “Excessive use of credit cards can have negative effects on your credit rating,” says Emily. “Also, late payments of any type can decrease your credit score, increase your home loan interest rate, delay loan closing, or cause loan denial.”
- Do not spend money you have set aside for closing. “Most conventional loans require 2 months of reserve money to be verified in your available financial accounts. Once it has been verified for use at closing, spending these reserve funds may result in loan closing delays or loan denial,” according to Emily.
- Do not originate any inquiries into your credit.
- Do not make large deposits without checking with your loan originator first. Emily explains, “Abnormal deposits or large deposits…must have money sources verified by Underwriting. Making these deposits could result in loan processing delays or denials.”
For more information about real estate in your area, contact your local ERA Team VP Agent or visit www.erateamvp.com. For more insight about the home buying and financing process, contact Emily McVay at emcvay@homesteadfunding.com or 716-450-7773.
Emily McVay
Licensed Loan Originator (NMLS 1586340)
Homestead Funding Corp. (NMLS 3232)
