When people think about the steps necessary to buy a home, there are a few things that come to mind. Steps like, getting prequalified for a mortgage loan and finding the right house at the right price. What some people don’t realize is that even after an offer on a home has been accepted, there is the potential for delays before loan closing. We have clearly outlined our loan process, from pre-qualification all the way through to loan closing. The more you know about where you are in the process and what else still needs to happen prior to closing, the better equipped you will be to avoid delays. Additionally, here are a few things you can do to avoid the most common causes for delay in the loan process.
Do not apply for any new credit
Yes, your credit report was pulled at the very beginning of the loan process, when you were prequalified for your mortgage. It is important to know, however, that your credit may be reviewed at any point in the loan process. When you are prequalified for a loan, the amount you can afford is based on many things including your current available credit. If that changes, your financial profile will likely need to be reassessed which could significantly impact your loan eligibility.
Do not make any large purchases on credit
As with opening new lines of credit, making large purchases on your existing credit may require a reassessment of your financial profile. This is because one aspect of your prequalification is your current debt to income ratio. If that ratio changes, your loan eligibility may change as well. If you are going to purchase new furniture or appliances for your new home, it is best to wait until after the loan closing to make those purchases.
Do not keep any questions or concerns to yourself
At Starboard Financial, we understand that the mortgage loan process can be somewhat overwhelming. Our experienced loan professionals in either of our Gilbert or Chicago offices can answer questions or address concerns you may have, at any point in the loan process. If you have any questions about the loan process, or are ready to take that first step toward your new home, contact us today.