March 25th, 2015 12:16 PM by Jackie A. Graves
you're applying for a mortgage when life happens, tell your lender. One of the
most important red flags lenders and their quality control teams' look for are
discrepancies between the information on the original loan application and the
borrower's circumstances when it's time to close the loan.
life changes affecting employment and debt, for example, could signal fraud and
cause the lender to postpone or cancel the settlement in order to evaluate the
new information. (Borrowers must sign a legal affidavit at closing attesting to
the truth and accuracy of the information in the loan application.)
of the current top fraud flags: borrowers whose employment situations at
closing are different than the ones they put down on the original applications.
In many cases, the borrowers changed jobs but were otherwise gainfully employed
and still qualified for the loan. Another common flag involves undisclosed debt
because after the mortgage was approved the borrower ran out and bought (and
financed) a new car.
loan officers up to date on job changes, new debts and similar changes since
the original application ensures the mortgage process is transparent and the
borrower is still able to qualify for a loan they can afford to repay.
Read other posts in our Spring Homebuying
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