Mortgage Approval is Not the Same as Closing
When it comes to getting a home loan, there is a whole checklist of things that you need to take care of. And one of the most important is mortgage approval. Unfortunately, many people think that mortgage approval means that the financing is a done deal. It’s not.
Obviously, in order to get mortgage approval you have to have your credit score and report checked. But that may not be the only time that a mortgage lender checks your information. Some mortgage lenders (and it’s becoming more common since the credit market crash) check your credit report again.
This means that if you run up more debt on your credit cards, or if you apply for a car loan, you could find yourself in trouble. Your mortgage lender may decide that you would be too much of a risk after all.
After mortgage approval, avoid any more debt until after closing. Mortgage approval is not the same as closing, and until closing, the financing on your home loan can still fall through.
Tags: credit-report, credit-score, mortgage-approval, mortgage-financing, mortgage-lender, Personal Finance, yielding wealthRelated Stories
POSTED IN: Credit, Mortgage and Loans, Personal Finance
1 opinion for Mortgage Approval is Not the Same as Closing
tina
Jul 24, 2008 at 8:21 am
What if you close and the loan is in line to be funded; can the lender back out? Can the borrower back oout?
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