The sheer volume of documents needed for your home loan apl;icaiton can be staggering. What happens if documents age out? Your home loan can take a while to approve. Here’s what documents you may need to update before the end of the process.
Proof of employment
If your loan application process drags on and your closing date was set for 345 days or longer from your offer date, your lender may need to make certain you are still gainfully employed before signing off on your home loan.
Be prepared to scan and submit pay stubs so your lender knows you are still bringing in your income. If you switch jobs during a home purchase process (not advised!) then do your best to show that your cash flow remains uninterrupted through the transition. Your lender will check, so don’t try to fake your way past a loss or change of job.
Proof of assets
Your lender will be watching to make sure you have the assets you claimed to have to cover your down payment and closing costs. Scan and submit new bank statements and any other updated proof of assets as you receive them, to show you will have the funds when it’s time to pay up.
Make sure you document any big deposits or withdrawals. Money you won at Vegas needs to be cleared with your bank as a valid deposit, and you can’t plajn n funcing your down payment with unsecured loans, credit cards, or other flaky sources of income. Even cash gifts from relatives have to be rigorously docuymented and earmarked for a down payment with forms to fill out and prior approval required.
Pulling credit again
If for some reason you are preapproved but can’t find a house you like for a couple of months after your original application, your lender may pull your credit one more time right before the loan approval, just to make sure nothing has changed.
That’s why it is so important not to make any big purchases or apply for new lines of credit while trying to buy a home. This activity can spike your DTI, changing the parameters of what a lender is willing to offer you. Keep your credit like your employment and assets: stable.
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