As a homebuyer, you know that the road to closing can be full of twists and turns. However, when working with Commerce Bank of Wyoming, we strive to make the process as smooth and efficient as possible. One way to ensure a speedy closing is by following some key tips which we have compiled for you. Following these tips will save you not only time but also potential headaches. Read on to learn what you can do to help your loan closing go smoothly.
Avoid overspending.
When you're applying for a mortgage, your lender will evaluate your debt-to-income ratio. This ratio reflects your ability to repay your loan. One way to throw this ratio off is by making large purchases before your loan closes. If you have too much debt, they may be viewed as a higher risk to approve your loan. To avoid this, hold off on any major purchases until after your loan closes.
Keep your job and income stable.
Your job and income are two important factors that lenders will consider when underwriting your mortgage. They want to know that you can make mortgage payments on time. If you're thinking of changing jobs or taking a pay cut, it's best to do so after your loan closes. A sudden change in income or employment status can cause delays or even lead to your loan being denied.
Avoid opening or closing credit lines.
Lenders view opening or closing credit lines as risk factors. Opening new credit lines can suggest that you're struggling financially and will impact your debt to income ratios, while closing credit lines can impact your credit score. Therefore, it is best to maintain your current credit lines until your loan closes.
Pay your bills on time.
Paying your bills on time is essential to keeping a healthy credit score. It shows potential lenders that you are responsible and capable of repaying your debts. Late or missed payments can result in a lower credit score, which can lead to higher interest rates or even loan denial.
Stay in communication with your lender.
Effective communication with your lender is key to ensuring a smooth closing process. Your lender will request specific documents from you throughout the process. Timely responses and providing accurate information will help keep things moving forward. If you have concerns or questions, reach out to your lender for clarity.
At Commerce Bank of Wyoming, we understand how important a smooth and efficient closing process is. By following the tips above, you can avoid potential pitfalls and ensure a quicker closing. Remember, your actions leading up to closing can affect your loan approval and closing timeline. If you have any concerns or questions, feel free to reach out to our Home Loan Experts who will be happy to assist you. Let us help guide you towards a successful loan closing process.
