10 Ways to Avoid a Closing Nightmare
- PLEASE DO NOT MOVE ANY MONEY AROUND UNTIL YOUR LOAN CLOSES. If a bank verification shows a recent increase in your accounts an explanation of the increase will be required.
- Try to DELAY ANY LARGE PURCHASES until after your loan closes. If a re-verification of credit shows you have recently bought a car, or your charge account balances have increased, it could jeopardize your loan approval.
- If your loan approval requires you to pay off bills, DO NOT PAY THEM YOURSELF, CONTINUE TO MAKE ROUTINE PAYMENTS UNTIL YOUR LOAN CLOSES. We will then request that you bring the monthly statements to the closing and let us pay off the accounts through the closing. If you pay the accounts yourself, we may not be able to verify zero balances for several days or weeks, which could delay the closing of your loan.
- Do not quit your job. Notify lender immediately in the event there is a job change.
- Don't take any Cash Advances on your credit card(s)
- Don't allow any additional inquiries (credit checks) on your credit
- Do not open or close any accounts.
- Continue to make ALL of your payments as agreed, especially your mortgage even when you are refinancing your loan. Any extra payments made during a refinance will be properly credited a closing. That is the law.
- Quickly return all documents from the lender or settlement company.
- Inform your mortgage consultant if your existing loan will be transferred to another lender prior to the closing of your new loan
This list was provided by Amy Schrader of Sun Trust Mortgage in Tennessee.
