Avoid These Mistakes When Getting A Home Loan

Dated: 05/24/2018

Views: 79

    One of the many things that frustrate real estate agents is when the clients don't listen to their advice. Agents are licensed professionals and take their duties to protect their customers seriously. One of the first things that agents will discuss with a potential buyer are the steps that must be taken in order to qualify and be prepared for the steps that will take place. Good agents will provide them with a step by step guide of what to expect and all the do's and don'ts, however, the advice is often not followed. Not heeding the advice of your lender and agent could cost you months of your time, you could lose the house of your dreams and end up starting all over!


   Take the example of protecting your credit, your agent should give you specific examples of what can hurt...or even kill a deal. The examples below show many of the most common mistakes that buyers make. We get it though, it is an exciting time in your life, you are already dreaming of the memories you'll make, the first time your friends and family see your new home and of course, you want to keep up with the neighbors by having all the things that make a home a home. To that point, don't try to make all that happen the day you move in! Believe me, everything will come together if you have a little patience. If you are motivated and prepared to purchase a home and have good agent and lender partners, the process could take as little as 30 days.  


Image result for apply for a mortgage

ONCE THEY HAVE PULLED YOUR CREDIT REPORT......

01. DO NOT HAVE IT PULLED AGAIN UNTIL YOUR LOAN HAS CLOSED

02. DO NOT CLOSE ANY EXISTING ACCOUNTS

03. DO NOT OPEN ANY NEW ACCOUNTS (EVEN TO PURCHASE FURNITURE INTEREST-FREE)

04. DO NOT INCREASE OR DECREASE ANY CREDIT LIMITS

05. DO NOT CHARGE ANY ATYPICAL OR EXCESSIVE AMOUNTS ON YOUR CREDIT CARDS. (10% TOLERANCE)

06. DO NOT PAY OFF ANY ACCOUNTS

07. DO NOT CHARGE ANY ATYPICAL OR EXCESSIVE AMOUNTS ON YOUR CREDIT CARDS. (10% TOLERANCE)

08. DO NOT MOVE MONEY AROUND FROM ONE BANK ACCOUNT TO ANOTHER

09. DO NOT DEPOSIT ANY MONEY INTO OR OUT OF YOUR BANK ACCOUNT(S) THAT IS NOT DIRECTLY RELATED TO YOUR REGULAR PAY

10. DO NOT DEPOSIT CASH INTO YOUR BANK ACCOUNT. ANY MONEY GOING INTO OR OUT OF YOUR BANK ACCOUNT WILL HAVE TO BE            EVIDENCED FOR THE PREVIOUS 3 MONTHS AND THROUGH CLOSING.

11. IF YOU ARE GETTING A GIFT, PLEASE CHECK WITH US BEFORE ANY MONEY IS TRANSFERRED. THERE IS A SPECIFIC PROCESS THAT MUST      BE FOLLOWED TO THE LETTER.

12. DO NOT APPLY FOR ANY CREDIT DURING THE MORTGAGE PROCESS

 

Furthermore, your interest rate is in part based on your credit score. If your score drops, you may no longer be eligible for the interest rate initially secured.

Please understand that it is critical that you do not apply for ANY credit during the loan process as it could jeopardize your loan approval and or rate. Please understand that you should not apply for ANY credit during the processing and closing of your mortgage loan. Under the new Loan Quality Initiatives (LQI) set forth by Fannie Mae, a “soft” credit report must be obtained no more than 10 days prior to the loan closing to verify no new credit inquiries have been made.

If there are ANY inquiries, even if no new credit has been obtained, a new credit report with updated scores is now required by Fannie Mae. Many factors can influence credit score ratings. It is possible that, if you have new inquiries on your LQI report, and a new credit report is required, your credit score may have dropped and you may be unable to qualify for the final loan approval needed to close on your loan.

 

We know this can be a stressful process, build a good relationship with your lender and agent partners to ensure everyone is on the same page and know everything they need to right from the start. If you or someone you know is in the market to purchase, please have them contact me for a free consultation.  



Shawn McCormick

Licensed Realtor®

Preferred Real Estate Brokers

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Karen Ott

Loan Partner

NMLS# 1636440

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