WHAT HAPPENS DURING CLOSING? WHY DO THEY NEED TO REVIEW YOUR CREDIT REPORTS AGAIN? I GOT A PRE APPROVAL, AND I SIGNED A REAL ESTATE CONTRACT, PUT UP ERNEST MONEY, AND WHEN I CLOSE WHAT HAPPENS DURING THAT PERIOD? I NEVER BOUGHT A HOME. SOME HOW MY LOAN OFFICER RAIN MY SCORES MY MID WAS 577 BUT HE KEYED IT IN HIS COMPUTER AND THEY SAID MY MID WAS 580. I GOT 7% FIN. GOT APPROVED FOR THE HOME I WANT. BUT HE SAID THEY'LL RUN MY CREDIT AGAIN AT CLOSING SO HE ADVISED ME NOT TO GET ANYTHING WHICH IM NOT I WANT THIS HOUSE. SO CAN YOU ANSWER MY QUESTIONS PLEASE?
2007-01-30 12:39:02 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
NOT TRUE to "Hunter2" answer!!
They will only RE-run your credit , if the loan process took longer then a month. Your credit is good for a month with majority of lenders, some lenders are 60 days!
Feel free to e-mail me with any other questions you might have. jvlok@clarionmortgage.com
2007-01-30 12:49:38 · answer #1 · answered by jhvlok 1 · 0⤊ 1⤋
During closing you will have a lot of autographs to sign, disclosures letting you know your legal rights, the final paperwork for the loan, etc. The escrow officer helping you with the paperwork should be able to answer any questions you have regarding what you are signing, don't be shy about asking.
To answer your second question it is very common for a lender to pull a second credit report at closing (though not all do) and perhaps check that you're still employed, just to make sure nothing has changed that would effect your being able to make the payments. For instance you going out and buying a new car or racking up a lot of new debt.
It has been known to happen when a borrower has been approved that he'll just go spend crazy thinking nothing can stop the loan from going through. So lenders will check things out just before signing the check.
2007-01-30 21:03:48 · answer #2 · answered by corel 3 · 0⤊ 0⤋
Pre approval is not the same as a loan commitment. They thought you looked like an nice person but now they want to be sure - so they are really looking at your credit. For some reason buying a home makes some people think they need a new car and new furniture etc. The lending company sees all that going out the door and could consider you a bad risk because you how have additional debt. This will also be the time they will start making you jump through all sorts of hoops right down to the last minute.
2007-01-30 20:49:37 · answer #3 · answered by justwondering 6 · 0⤊ 0⤋
Congrats - you have been approved, but with the criteria they had on you when the underwriting approval went through. Many lenders will pull credit again to ensure that 1. You haven't changed your Debt-to-Income ratio by buying more items on credit and 2. To make sure your critical information was as they thought it was when first pulled (like no lates on a current mortgage)
The closing can be painless, or a real pain. Your hands will be tired after signing seemingly 100 pieces of paper all related to your loan agreement, terms, penalties, verifications, etc... You have the option to read every thing before signing, and ask any questions you might have. Once signed, you can't go back, so it is recommended that you review the loan papers two days prior to closing and ask all your questions prior to the closing time set for your loan.
2007-01-30 21:52:27 · answer #4 · answered by walkinandrockin 3 · 1⤊ 0⤋
your lender is just making sure that something hasnt changed that will make it more difficult for you to make the payments on your home. if you've run up a lot of new debt (e.g. bought a new car or run up a big credit card bill), then your lender may walk away.
on closing day, you spend an hour or more signing papers (ugh) regarding the loan terms and the transfer of property. in most states, you will normally need to hire an attorney beforehand to handle the contract for you, and your responsibility at closing is mainly to read the papers they put in front of you and that you understand what it is that you are signing. the other people in the room may get impatient if you read everything, but it is your *** on the line in the long-run to follow through on the terms of your contract, so be sure to ask your attorney questions if there is something you dont understand or that you are not comfortable. your attorney and the other people in the room may act impatient with you, but your attorney WORKS FOR YOU, and it is her job to answer your questions.
the key thing to remember in all this is that this even though this is a stressful process and everyone involved has a different set of interests, everyone also wants to see the deal go through.
so dont worry to much about closing day, and try to figure out instead where you are going to get some free packing boxes and some friends to help you haul your furniture across town
2007-01-30 21:02:23 · answer #5 · answered by Jeff G 2 · 1⤊ 0⤋
All lenders run your credit once more prior to funding your loan.
It is their last chance to confirm that you are in fact, qualified for the loan. Don't be surprised if they make a last minute phone call to see that you still have your job.
He's right don't charge anything until after the close.
Congrats!!
2007-01-30 20:44:46 · answer #6 · answered by Anonymous · 0⤊ 1⤋
I've seen people lose their job just before closing or give a car back to the finance company just before closing. That changes EVERYTHING! Don't do a thing until AFTER closing..they will know. Don't get married or divorced either!
2007-01-30 20:59:55 · answer #7 · answered by dreamgirl 5 · 0⤊ 0⤋
ask Howard Clark.com he has all the answer for this.enjoy your new home.
2007-01-30 20:47:05 · answer #8 · answered by Connie 3 · 0⤊ 0⤋