You’ve STRUCK A DEAL for the perfect home!
Here’s what NOT to do during the financing process:
Top 10 Deal Breakers:
1. DON’T MAKE ANY CAREER MOVES. One of the factors considered when approving your loan is the length of your current employment, it points to the stability of your income.
2. DON’T DO ANYTHING TO AFFECT YOUR CREDIT SCORE. No new accounts, no charging up additional debt, no new credit applications, no consolidating debt, no paying off debt, no closing accounts, no late payments. And, of course, don’t charge new furniture or appliances! There are many things that cause red flags in the scoring system. The less activity on your reports during the loan process, the better.
3. DON’T CO-SIGN FOR SOMEONE ELSE’S LOAN. This will increase your debt liability because you’re just as responsible for that monthly payment, and that affects your debt ratio, and ultimately, the amount of mortgage you qualify for.
4. DON’T SPEND YOUR DOWN PAYMENT MONEY. It has to be verified with bank statements or written verifications, and you’ll need that money at closing.
5. DON’T MAKE ANY LARGE DEPOSITS OR LARGE WITHDRAWALS FROM YOUR BANK ACCOUNT. Those are more red flags. Lenders need to “source” your down payment money and verify that it belongs to you. If a large deposit is due to a gift from a relative, the sale of an asset or proceeds from a new loan, your lender needs to know. Don’t transfer money around until after your lender verifies it.
6. DON’T FORGET YOU WILL NEED GUARANTEED FUNDS AT THE CLOSING TABLE. Since the ownership of the property is to be transferred on closing day, most settlement agents require guaranteed funds for the amount the buyer brings to the closing. The most commonly accepted format is the “cashier’s check” or “wire transfer”.
7. DON’T LOOK BACK AFTER LOCKING IN YOUR RATE. The interest rate markets are constantly fluctuating, and by trying to out-smart the market, you may drive yourself nuts! If you’re happy about the rate at the time you lock it in, move on with your day.
8. DON’T LOSE TRACK OF IMPORTANT PAPERS. Things can get hectic when planning a big move. Remember to keep paperwork like tax returns, paystubs, and bank statements handy; your lender will need them.
9. DON’T FILE FOR DIVORCE OR BEGIN ANY LITIGATION. Changing your marital status or becoming a party to a lawsuit can complicate the process, as it can sometimes affect title or the lender’s lien position.
10. DON’T LOSE CONTACT WITH YOUR MORTGAGE LOAN OFFICER OR REAL ESTATE AGENT. If you have any questions about whether or not you should take a specific action during the process, remember to check in with your mortgage loan officer or real estate professional. They can help with those decisions and provide the resources you need to avoid making mistakes that could drop your credit score or possibly cause you to lose your loan.
Special Thanks to Katie Karr, Bank Star, Senior Loan Officer, 22 Years Experience, NMLS# 263796 email@example.com
For More information on The Lake of the Ozarks Real Estate Market, contact the Schrimpf-Gum Team for more information. Call: 1888.366.6266 or 573.365.7333 Email: Info@DemandDonna.com