Closing Home Mortgages in Jeffersonville, IN

Once you’ve been pre-approved there are still things to be mindful of, as you don’t want to jeopardize getting those keys in your hand! This page is going to provide information on what not to do after pre-approval for mortgage. Please note that these missteps can derail the entire mortgage process. 

A pre-approval is based on many factors with the debt-to-income ratio being one of the most important, this means you should continue spending the same amount of money (or less) each month and continue to make the same amount of money each month. Your chances of getting denied after pre-approval are slim, but it does happen. 

#1 – Change Marital Status

This can throw a major wrench into the home buying process. Changing Your Marriage Status During the Mortgage Process Your marital status impacts your mortgage. Certain states are community property states, which means that your spouse must be included on the title/deed to your home. If you get married between the application date and closing your mortgage, your loan will be denied. Please advise your Loan Officer of any potential status changes, so that they can be prepared.

#2 – Change Jobs

This can be a deal breaker, as you need to show (typically) at least two years of consistent employment. This shows the lenders that you are a responsible person, which means you’ll likely have the money to pay your mortgage. Also, if the new jobs is less money, then it will impact those all important debt-to-income ratios.  If you change jobs during the process, then we’ll need be alert ASAP, as there might be a way to continue with the loan … but this isn’t always the case.

#3 – Switch Banks or Move Funds to a Different Financial Institution

Your “funds” are verified during the pre-approval process and a conditional approval is issued, which means we look at the bank statements provided early in the process. The funds used for purchasing a home must be “seasoned” for two months. If your money is bouncing from bank to bank it makes it difficult for us to verify funds and without this, then your loan might be postponed.

#4 – Payoff Existing Accounts (Debt)

Once your file is reviewed your Mortgage Loan Officer will let you know what (if anything) needs to be paid off. Often times things only need to be paid off to improve your debt-to-income rations. Always ask your loan officer for direction. 

#5 – Make Any Large Purchases

Please, please, please wait until you move into your new home to purchase the new car or furniture. A large purchase with cash could deplete the funds needed to close/reserves in your account. Opening a new line of credit can negatively impact your debt-to-income ratio … causing your loan to no longer be approved.

Give us a call at 812-941-0926 and we can discuss next steps with you or get started today via our online application which can be found here.