1. Failure to properly disclose all monthly financial obligations
Inform your Mortgage Loan Originator at the time of application of all monthly obligations including mortgage payments, loans, alimony/child support and revolving credit accounts. Additional documentation may be required, which could delay financing.
2. Changes in employment
Changes in employment may affect the underwriting process, especially if there is a job loss, lower salary/wage, or position change. Inform your Mortgage Loan Originator immediately if there is a change or you are considering a change in employment.
3. Change in banks/investments or moving funds to another financial institution
Changing banks or investment institutions, or moving funds between accounts prior to loan closing may result in delays, as deposit re-verification may be required during the underwriting process.
4. Paying off bills/loans prior to loan closing
Paying off existing bills/loans may affect the underwriting of the loan as important debt-to-income ratios may change, requiring re-verification of existing credit reports or loan balances
5. Making a large purchase
A large purchase that involves withdrawing funds from a bank/investment account or the extension of additional credit after a loan application is made may negatively impact loan underwriting or cause delays in processing.