The Closing Day Wait

By Morgan Saylor

The journey to closing a mortgage loan can vary greatly for everyone. Depending on your financial situation, your credit situation, whether or not you’ve owned before, and dozens of other factors play into the mortgage process. However, if your closing is near and you think you see the finish-line, then congrats! But your journey’s not over yet – Zillow’s Brendon Desimone points out a few things that you should know between where you are right now and your closing day.Mortgage rates can change – daily

Mortgage interest rates can change on a day-by-day basis. When you prequalified for your mortgage loan, you were likely quoted a rate that was then “locked-in”. Desimone writes that rate-locks typically last 45, 60, or any number of days. Complications that can arise during the loan process (issues with the property or the home itself, or failure to provide underwriting proper documentation in a timely manner) can cause locks to expire.

Speaking of proper documentation – that brings up the next point.

Prequalified doesn’t mean approved

Because you’ve prequalified by submitting your application and paperwork doesn’t mean your loan is approved. SMC mortgage bankers work with processing and underwriting staff to verify income and other information as it pertains to your complete financial picture. It’s important to not change this picture in the meantime – that means not opening new lines of credit or making other major purchases that would change your debt-to-income ratio.

Do your homework

Homeownership is a lot of responsibility, beginning with the moment (and before) You take ownership. Ask your realtor about your responsibilities therein; Desimone writes, “in most states, the law is on the side of the buyer, and requires the seller to disclose any issues and confirm they’ve been resolved. In others… it’s up to the purchaser to double- and triple-check that the seller closes all outstanding building permits, releases all liens from the title report, and resolves any issues with the local building department, assessor or health department”.

For more on what you should know while you wait for your closing day – check out this blog. If you’re otherwise well on your way to closing, and you want to fully prepared to close, check out our Guide to Closing Day


Tags: Rates, Home Loans, DTI, closing