When purchasing or refinancing a home, getting from loan application to the actual closing can take time, typically 3 weeks in an average home market. However, some loan approvals for unique situations have been known to take much longer. Many different factors could determine how long it will take to get to the closing table; and the longer it takes, the more room for a margin of error on your part. The smallest mistake could leave you at fault for accidentally “un-approving” your mortgage!
Be cautious and keep the following rules in mind while waiting for your closing:
- Do not upgrade a lease or purchase a new vehicle
- Do not change from a salary to a commissioned position at work
- Don’t quit your job, change industries, or start a new business
- Don’t transfer large sums of money from account to account
- Pay all of your bills, even ones that are currently being disputed
- Avoid opening new lines of credit, such as credit cards, regardless of the deal
- Do not forget to fill out proper “gift” paperwork when receiving a cash gift
- Do not make undocumented deposits into your bank account
The time that you have to wait between becoming approved and the closing can be crucial. Things can go wrong, you can become ill, lose your job, or something could happen to your home. These are scenarios that aren’t necessarily avoidable. However, it is important that you take the rules above into the highest regard. Self-control is important in those few weeks – don’t “un-approve” your own mortgage loan.