Your family has located the home of their dreams. You have your lending already taken care of and so you move ahead with signing a contract. But to your chagrin, you find out there will be delays at the closing table and wonder why is this happening to you?

In most situations, the borrower has changed their lending circumstances along the way and that St Louis mortgage loan is history at least for now.

Banking requirements are strict at this time due to the losses on Wall street and the foreclosure dark cloud that continues to loom over the financial market.

Lenders and banks are not required to closely watch any type of changes that may occur with a borrower’s ability to qualify for the home loan they are seeking from the time of the application to closing.

Although this is nothing new in the mortgage arena, Fannie Mae has and will be enforcing them more vigorously. For consumers, it could very well mean delays that could otherwise screw up a perfect mortgage closing.

“Any change in circumstance could affect and delay a borrower’s closing on a transaction,” so says David Adamo, the CEO of Luxury Mortgage of Stamford.

Thus, we will discuss 3 important areas a borrower should watch for before proceeding to the closing table:

1. Credit cards being maxed out

When you are waiting to close on your new home, leave the credit cards at home. Going out and charging up credit cards is another guaranteed way of messing up your smooth closing. Consider paying cash until everything is finished with your mortgage closing.

Keep in mind that St Louis loans are approved based on your current debt-to-income ratio. Lenders take a close look at your debt payments compared to your income. If this debt is too high, your chances of being approved go down considerably.

The stinger is that you may have qualified at the beginning but due to FHA requirements, lenders will re-calculate your debt-to-income ratios before the closing and this is when you get the bad news that you may not be closing on your new home.

So as many St Louis finance experts will tell you, be patient and wait to buy those new appliances or electronics for that new home.

2. Applying for a new credit card or car loan

Do not, I mean do not go out and apply for any new credit cards or a new automobile loan. This is also one of the biggest mistakes consumers make while waiting for their home loan to close. If this is an emergency, you must discuss this with your mortgage broker or banker before moving head.

Fannie Mae will certainly go over past documents and when they discover the undisclosed auto loan, the lender who made the loan will have to buy it back as a bad mortgage and thus lose money.

To make sure that the consumer is not financially negligent, the bank will do a last minute credit check to see that everything is still in order with you finances. Any changes and your home loan application will be denied.

3. Changing place of employment

Stay at your job until you done with your closing. Repeat. Stay at your current job. This avoidable mistake could make the huge difference between moving into that new dream home or being told there is a delay at closing.

And do not change how you are being paid at work. If you are on salary, stay on salary until after you complete your home loan closing. You will be thanking me for these tips when you are moving into your new dream home.

Author Bio: To learn more about a St Louis mortgage, stop by Floyd J. Tapia’s site where you can find real tips about securing a St Louis loan. We also invite you to call us at 314-334-0210.

Category: Finances
Keywords: st louis mortgage, st louis finance, st louis refinancing, st louis home loan, st louis loan