What other expenses will I have to incur in addition to what is on the closing cost estimates provided by my loan originator?
You should be prepared to pay for property inspection which could include additional tests like Radon testing, sewer line scopes, and structural inspections. These items can be paid for by credit card or funds on hand.
What could I do on my credit that would jeopardize my loan approval?
Pay rent or mortgage 30 days late Pay other bills late Open new credit accounts Buy a new car Apply for new credit even if you don’t open an account Co-sign for someone on a credit obligation including student loans Have a collection account show up for an unpaid account File bankruptcy Dispute an account […]
What if I want to change jobs just before or during loan application?
Changing jobs can have several effects on your loan approval and most of them are not good. Always ask your loan originator before changing employment. For example, if you are employed and decided to start your own company, you would need to wait for 2 tax returns to be filed before we could use your […]
My job is good through the closing date and 1 week after closing, I have a new job. Is that OK?
No. Your current employer will be contacted very close to the closing date and it is likely it will be revealed that you are leaving the company in a few days. This will cause your loan to be denied or postponed until long term acceptable employment can be documented.
I haven’t filed my taxes for this year (or previous years). Can the lender use the last two years that I have filed?
No. Lenders require that we use the last required tax returns for income determinations even if you are not self-employed. If you have not filed your taxes on April 15th of any given year, you will be required to provide your tax extension form. By October 15th, the lenders will require that we use that […]
I just filed today and the IRS can give me a printout that I filed. Will that be sufficient to close the loan.
No. The lenders will require that the IRS provide an electronic transcript via a 4506 request received from the lender. If you have just filed, it can take from 2 weeks to 3 months, to get the IRS verification. This timeframe depends on the time of year you filed, the method you filed, and the […]