Want to help your home financing process go more smoothly? Once you've received a home loan approval, simply understanding issues that can impact the financing process is important. The following topics address potential challenges that may delay your closing date or even impact your ability to obtain a mortgage.
Follow these tips for a smoother financing process:1
DON’T hesitate to inform your mortgage consultant before making changes to your employment.
DON’T stop making payments on existing accounts.
DON’T make major purchases with credit, co-sign another loan, or max out existing credit cards.
DON’T assume closing existing lines of credit or paying off collections or charge-offs will improve your credit score.
DON’T deplete savings to pay off credit debts.
DON’T make large deposits into your bank account(s).
DON’T change bank accounts or transfer funds within existing accounts.
DON’T hesitate to contact your mortgage consultant if you are concerned something will impact your loan.
Individual circumstances will vary. Any one of the above mentioned activities may or may not impact the financing process. Questions? Contact a mortgage consultant near you to discuss the details about your individual situation.
1. This list is only to be used as a guide and is not all-inclusive. Should events arise requiring changes to your credit, income or assets, your mortgage consultant can discuss how these changes may affect your loan application process. Edina Realty Mortgage is not a credit counselor. Information displayed is not credit advice and should not be relied upon or interpreted as such.
As Edina Realty Mortgage continues to monitor the government shutdown, we would like to share some frequently asked questions about the impact on mortgage loans. Please contact your mortgage consultant with any questions or concerns about specific loan transactions.
Will the flood certification process be affected?
For the most part, the flood certification process will not be impacted. However if a situation requires additional research, such as mapping issues, the flood certification process will be impacted.
What about loans requiring social security number verification?
The Social Security Administration is now currently fulfilling requests for social security number verifications.
Will the IRS process tax transcript requests?
The IRS started to process transcript requests as of January 8th. However, the IRS will require an undetermined amount of time to return to normal service levels.
What is the impact on USDA loans?
USDA is unable to issue new commitments or guarantee closed loans. Effective December 15, 2018, USDA loans require tax transcripts. USDA loans cannot close without full tax transcripts for all adult household members.
How are government employees affected regarding employment verification?
If a borrower works at an agency that does not use a third-party verification resource, then employment verification cannot be completed. Loans cannot close without a 10-day verbal verification of employment (VVOE).
How are FHA, USDA & VA questions escalated?
Government agencies will have limited staff available to answer questions or correspondence. We always intend to answer questions in a timely manner; however, we may be delayed in responding while we wait for clarification from the government agency.
Contact your local mortgage consultant to discuss any financing questions.
This list is of frequently asked questions is only to be used as a guide and is not all-inclusive. Please contact your mortgage consultant for any questions related to specific loan transactions.