Congratulations! You delivered your bank statements, tax returns, pay stubs and signatures.
The critical paper chase is over, and you have won the decisive battle. You have been approved for your home mortgage from Palm State Mortgage Company!
Mortgage Approval: A Goal, Not The Game!
Now that you know your mortgage approval is effectively a “touch-down,” you are ready to celebrate the game day victory! We don’t mean to be spoilsports, but…Palm State Mortgage Company, like many good mortgage brokers, has some warnings for you.
We strongly caution you to be aware that although your loan is approved, “it is important that you not forget you are in the middle of the application process.”
Successful Mortgage Approval Applicants: Don’t Fumble the Ball now!
- Even though you have been approved, do you know you and your application can be re-evaluated during the period of time between approval and closing?
- Do you know that you can even be denied after this initial approval?
- Do you realize that the final whistle has not been blown yet on the mortgage approval game-day?
At Palm State Mortgages, We Know The Pitfalls!
Our years have brought us experience with borrowers who have gained their mortgage approvals, only to lose them through last minute penalties. Don’t let this happen to you after you have attained that magical mortgage approval. Check out the snares and traps below, and learn the rules for the time in between approval and closing. Here are three realities for you to face before closing date, although you have initially been granted mortgage approval:
1. Realize your credit can still be checked at any time up until closing.
2. Understand that the appraiser might be asked to go back out to the house.
3. It seems like a complete invasion of privacy, but it is totally acceptable for the underwriter to telephone your employer.
ABC’s of Your Palm State Mortgage “Don’ts”
Here are some key “don’ts” to govern your financial behavior between approval and closing. Our best advice is to save your celebration until after closing!
A is for Avoid, as in avoid those new credit accounts after you get your mortgage approval. (You can buy new furniture after closing! If you do it now, the deal could evaporate, and you’d have no place to live with that furniture or those new clothes or that vacation investment!)
B is for Bank, do not make deposits that can’t be documented. Experts say, “Expect to have to document every deposit to your bank account(s) for the two months prior to application and even during the loan process.”
Your underwriters don’t like to see deposits that have no basic back-up like a bill of sale, receipt, or gift letter. They want to know you can steady make your monthly payments, but a sudden, unsubstantiated cash deposit throws up a red flag, like you might have some secret back-field-in-motion or strangely hidden assets.
C is for Car, as in do not buy one at this time. Understand that a credit check at this time could spell disaster.
D is for Delay, as in delay that job change, even if it is for more money or within the same company. You do not want the lender to hold up your closing while you are saving two months of pay stubs. Do you realize that two months’ delay could be just enough incentive for the seller to back out of your deal?
Now that you know how to behave financially in the weeks leading up to closing, we invite you to check out what happens next at this informative online resource.
Palm State Mortgage Company’s best advice is: After your approval is to delay your celebration until you have signed your papers at closing! Remember we are here for you if you have any questions about obtaining a mortgage.
