Your family has located the home of their dreams. You have your lending already taken care of and so you move ahead with signing a contract. But to your chagrin, you find out there will be delays at the closing table and wonder why is this happening to you?

In most situations, the borrower has changed their lending circumstances along the way and that St Louis mortgage loan is history at least for now.

Before you apply for your home loan, keep in mind that banking requirements have drastically changed due to the recession this country has been in.

Fannie Mae has been no exception to this rule. This mortgage behemoth’s ‚Loan Quality Initiative,‘ which went into effect June 1, requires all lenders to closely follow „changes in borrower circumstances“ between the time of the initial application and closing.

Although this is nothing new in the mortgage arena, Fannie Mae has and will be enforcing them more vigorously. For consumers, it could very well mean delays that could otherwise screw up a perfect mortgage closing.

David Adamo, CEO of Luxury Mortgage of Stamford says: „Any change in circumstance could affect and delay a borrower’s closing on a transaction.“

Hence, here are 3 things that home owners should look at closely that could adversely affect their closing:

1. Maxing out your credit cards

When you are waiting to close on your new home, leave the credit cards at home. Going out and charging up credit cards is another guaranteed way of messing up your smooth closing. Consider paying cash until everything is finished with your mortgage closing.

The obvious reason for this road block is that St Louis home mortgage loan approvals are based on debt-to-income ratios. This means that all lenders look at the consumer’s debt payments and then compares this amount to their income. If the debt ratio is too high, you may be turned down for a loan you originally qualified for.

Once again, Fannie Mae strongly encourages lenders to recalculate debt-to-income ratios right before closing. Keep in mind that it is getting tougher for many to even get a new home loan so why ruin what could be a day of celebration.

Remember, those new appliances or new car can and should wait until after your closing has taken place.

2. Applying for or getting a new credit card or auto loan

If you really want to ruin your chances of a smooth mortgage closing, simply go out and make one of the biggest and unintelligent mistakes many borrowers make and that is getting a new credit card or auto loan especially without discussing this with your loan officer or banker.

This can create a huge unnecessary mess because when Fannie Mae discovers the undisclosed auto loan or new credit cards that have been used, they may make the original buy back the loan as a bad mortgage and you may be held accountable for any financial losses to this lender.

That will no longer happen. They will at the last minute do a new credit check and turn you down due to your financial negligence. This also applies to a new credit card whether or not you use it.

3. Changing jobs

Stay at your job until you done with your closing. Repeat. Stay at your current job. This avoidable mistake could make the huge difference between moving into that new dream home or being told there is a delay at closing.

Another no-no is changing how you are paid during the home loan process. If you are salaried, stay on salary. Don’t go on commission with the promise of huge bonuses until your closing is complete. These simple steps will help give you a smoother closing.

If you and your family want the best St Louis mortgage, then visit www.StLouisRefinancingGroup.com to get the best St Louis home mortgage advice on a St Louis finance home loan for you and your family. Or call us at 314-334-0210.