The closing process for a purchase or refinance is the football equivalent to 1st and Goal on the 10 yard line; so close but just as much focus is required to score. To ensure a smooth and painless closing, please keep the following in mind:
Updated Income & Asset Documentation
Lenders require income and asset documentation to be no older than 30 days before closing. Please keep updated paystubs and asset statements handy so when I need them, you can send them over right away.
An additional Credit Inquiry
It’s not uncommon for lenders to pull another copy of your credit report prior to closing a loan. Until things are finalized, please do not take out any additional car loans, credit cards, 401K loans, student loans, etc, for they may affect your ability to close. Even inquiries from companies while shopping for financing could bring up additional questions from the underwriter.
Lenders will always do a verbal or written verification of employment prior to closing. Any changes in employment should not be considered, discussed or acted upon until closing, for this could certainly affect your ability to qualify for the loan.
Funds to Close
For purchase transactions as well as some refinance transactions, funds to close are required. These funds must come from one of the accounts that you have stated on your loan application and have provided bank statements for. Gift funds are often time acceptable as well as using funds from different accounts, but we would have to provide additional documentation to document this. Also please note that any large deposits must be sourced with a copy of the cancelled check and accompanied with an explanation.