Denver, Colorado – Buyers who want to finance the purchase of their home should rethink carefully what they do financially in the time between obtaining their first conditional loan approval and the time they close on their new home.

Lenders are facing more regulations for underwriting mortgages. These standards will certainly ensure that buyers will need to do more than fog a mirror to get a loan.
If you’re considering purchasing a home, here’s what you’ll need to know:

• The lender will be pulling another credit score about three days before you close. If you opened a new credit card, bought the SUV you thought you had to have to live in Colorado or decided to max out a credit card with your new appliances, beware – your credit score could be negatively affected.  Don’t let that happen.  Put off your big purchases until after the closing and don’t open new credit.
• Employment verification – yes, the lender has to do this again too.  Three days before closing.  Don’t quit your job before you buy your house!
• As I said in a recent article about credit scores, buyers’ initial scores need to be higher than ever to get the best rates.  Make sure you handle any credit repair issues in the months prior to applying for a home loan.

The best advice of all is to utilize a loan officer who clearly knows the guidelines, and who can advise you throughout the process.  Use a loan officer in the community you’ll be buying in.  Out-of-state lenders rarely know or understand the nuances of closing loans in another state. We see more delayed and messed up closings with out-of-state lenders than for any other reason.  Now, buyers themselves may cause delays (and be at risk of losing their deposit) if they don’t heed the warning to leave well enough alone when it comes to their credit and employment.
Look for your new house here: www.GretchenRosenberg.com and click “contact me” to ask for references to great local Denver loan officers.