The mortgage process can often take up to thirty days or more. It’s difficult to keep your life on hold while the process is being completed. As such, you are likely to make changes that affect your financial profile. You might need to buy a new car, renew a lease, open a credit card for unexpected expenses, start a new job and so on. As routine and casual as it is, you must remember to keep your loan officer or processor in the loop regarding any change. In fact, it would be wise to seek their counsel prior to making these changes.
The reason is obvious to me because I’ve been in the industry for years. The slightest change in your financial profile can cause a great disturbance to your loan approval, or cause further delay because each change must be documented. Please try to remember that the mortgage company has regulations and guidelines that require them to document many facets of your financial profile. Exclusion of these changes constitutes a violation of these regulations.
For example, I worked with a borrower for over 40 days to get her loan approved. As required by the regulations, I called her employer ten days prior to her close date only to discover that she had quit her job. Upon talking with her, she informed me that she had started a new job but had been there less than a month, which is what’s typically required. This caused us to delay the closing several more weeks until I could get a paycheck stub that complied with my guidelines.
So remember, any change, no matter how small or casual should be communicated with your lender first so they can explain the repercussions and offer advice.