Now that you have accomplished one of the major pieces of preparing to become a home owner, getting a loan preapproval, it’s important that you take the steps that you will need to secure It until you go to settlement.
Here’s what happens: After you receive your preapproval letter and decide to move forward with the purchase, the lender will start your file, give you a list of paperwork required, order an appraisal and credit reports, verify your employment and income, and more….
The file is then sent to the processor who will review all of your information you provided, as well as the appraisal once it is done. The file is prepared and then sent to the underwriter.
The “underwriter” is the person who ultimately determines whether or not you are an acceptable credit risk. He or she will assess your ability to repay the loan. Then, just before funding the loan, the underwriter will perform what is known as a “soft pull” of your credit information to see if anything has changed.
This is the point where the bank will check to see if your financial strength from the time you got the mortgage preapproval to now, days before the settlement, is the same . If you hope to keep your purchase alive, we cannot stress how important it is not to do anything – from application to closing – that might change your financial picture and sabotage your final approval. This means no shopping on credit for appliances, furniture, new cars or anything else. Don’t switch jobs, fall behind on your bills, co-sign a loan for anyone, or in any way reduce the income stated on your application. This will ensure that your preapproval will see you through to the settlement table.
(Cited from Market leader)
Marcia Singh, Realtor®