Congratulations! You’ve found a home to buy and have applied for a mortgage!You’re undoubtedly excited about the opportunity to decorate your new home,but before you make any large purchases, move your money around, or makeany big-time life changes, consult your loan officer – someone who will be ableto tell you how your decisions will impact your home loan.Below is a list of Things You Shouldn’t Do After Applying for aMortgage.Some may seem obvious, but some may not.
1. Don’t Change Jobs or the Way You Are Paid at Your Job. Your loanofficer must be able to track the source and amount of your annual income. Ifpossible, you’ll want to avoid changing from salary to commission or becomingself-employed during this time as well.
2. Don’t Deposit Cash into Your Bank Accounts. Lenders need to sourceyour money, and cash is not really traceable. Before you deposit any amount ofcash into your accounts, discuss the proper way to document your transactionsThings to Avoid After Applying for a Mortgagewith your loan officer.
3. Don’t Make Any Large Purchases Like a New Car or Furniture for YourNew Home. New debt comes with it, including new monthly obligations. Newobligations create new qualifications. People with new debt have higher debt toincome ratios…higher ratios make for riskier loans…and sometimes qualifiedborrowers no longer qualify.
4. Don’t Co-Sign Other Loans for Anyone. When you co-sign, you areobligated. As we mentioned, with that obligation comes higher ratios as well.Even if you swear you will not be the one making the payments, your lender willhave to count the payments against you.
5. Don’t Change Bank Accounts. Remember, lenders need to source andtrack assets. That task is significantly easier when there is consistency amongyour accounts. Before you even transfer any money, talk to your loan officer.
6. Don’t Apply for New Credit. It doesn’t matter whether it’s a new credit cardor a new car. When you have your credit report run by organizations in multiplefinancial channels (mortgage, credit card, auto, etc.), your FICO® score will beaffected. Lower credit scores can determine your interest rate and maybe evenyour eligibility for approval.
7. Don’t Close Any Credit Accounts. Many clients erroneously believe thathaving less available credit makes them less risky and more likely to beapproved. Wrong. A major component of your score is your length and depth ofcredit history (as opposed to just your payment history) and your total usage ofcredit as a percentage of available credit. Closing accounts has a negativeimpact on both of those determinants in your score.
Bottom LineAny blip in income, assets, or credit should be reviewed and executed in a waythat ensures your home loan can still be approved. The best advice is to fullydisclose and discuss your plans with your loan officer before you do anythingfinancial in nature. They are there to guide you through the process.
Author:Tammy Moore Phone: 352-636-2684 Dated: October 8th 2019 Views: 12 About Tammy: ...
EXIT Realty Champions', Champions Gate Real Estate Office, by Reunion Resort Orlando, is a full service Real Estate Brokerage Office in Champions Gate, Davenport 33896, next to Reunion Resort in 34747. Search for homes for sale with our Realtors, local experts in Champions Gate, Reunion Resort, Kissimmee and Davenport FL. This being the main area for resort vacation homes that can be rented out to meet the Disney World Orlando>, Universal Studios and other theme park market.
Alternatively, if you are looking for a new place to live, Our Realtors can help you find the perfect home in the Orlando, Kissimmee, Davenport, Clermont area known as the Four Corners, where Osceola, Lake, Orange and Polk Counties come together, Next to Disney and the Theme Parks.
EXIT Realty Champions' Realtors in Champions Gate, have a cutting edge Digital Marketing Strategy to help you sell your home for top dollar available in today's demanding market.
Rest assured that EXIT Realty Champions will Champion your housing needs, whether buying or selling one of the biggest investments you have, your home.
In a normal housing market, whether you’re buying or selling a home,
"Lance Whipple has been our Realtor for the purchase of three vacation properties in the central Florida area. There are many reasons why we always choose to work only with Lance. First, he is very professional, respectful, trustworthy and incredibly knowledgeable in the local market. One thing we really appreciated is that he is very diligent moving things along with the urgency and at the pace needed. He was always on time, very responsive and was always available when needed, either at the moment or very shortly thereafter. He offered valuable guidance, kept us updated at all times, and helped us navigate through each step of the entire process. He also created a purchase contract that was beneficial to us and protected us as buyers, while being also reasonable and fair to all the parties involved.
Despite all this, I think what we appreciated most was his personal attention, and friendly and positive attitude. Although we knew he had many other clients, he always made us feel like we were the only ones. We highly recommend Lance."