OK.  You have complete the loan application and now your loan package is being reviewed by the underwriter.  There are a couple of things that you never want to do during the loan process.

1.  Never, Never, Never (absolutely never) apply for a new credit card, car loan or lease, or take on any other type of debt while in underwriting.  If you need a new car wait until the loan is closed before shopping.  The reason for this is when you complete your loan application, your debt to income ratio is calculated and in most cases, your information is entered into an automated underwriting program called desktop underwriter or desktop originator.  At that time, we receive an approval that Fannie Mae or Freddie Mac will purchase your loan based on the information entered.  The loan still needs to be approved by an underwriter but if any of the information changes, the process starts over again which can delay your closing.

2.  Don’t make any changes with your assets.  Leave the accounts you have open alone and don’t make any large deposits or withdrawals out of the accounts because any changes will have to be address by a letter of explanation.  All changes will have to be sourced and may require that they stay in the account for a set time (seasoning).

3.  Don’t change jobs.  You need to show a minimum of 2 year work history and it needs to be in the same line of work.  Don’t change jobs from a salaried employee to a commissioned employee.  You have to show 2 years of income.  If you are self employed, that opens up a whole new set of challenges.  I have taken some classes on how to calculate income for the self employed but the final decision is up to the underwriter.  Loans for the self employed have become more difficult to close the past few years.

If you have any questions about these or other topics, email me at dave@davebeckmann.com or call me at 720-435-4022