Financing

Being prepared financially is the paramount when buying the right home, it helps eliminate time and frustration. Besides your realtor this role on your team can have the biggest impact on the process and outcome of your final purchase. Often people will spend a lot of time finding the right house and negotiate the right price only to give those same savings back due to a poor or uncompetitive loan.

We can help you find:

  • The right professional who can explain the fine print and guide you effectively
  • This person will help determine the right loan that fits your needs best
  • The right institution that grows with you

Positive points on having a pre-approval in place prior to committing to an offer:

  • Advantage over the competition or multiple offer scenarios, as sellers are more likely to accept offers from a buyer who has already secured financing.
  • Helps save time and frustration as it allows you to determine your budget and focus on affordable homes.

Questions You should be Prepared to Answer or Ask:

  • What documents do I need to provide, proof of income, letter of employment etc..?
  • What is best for me fixed interest rate or adjustable
  • What are your closing costs and associated fees for the loan
  • Do you offer loan rate locks?
  • Is there a prepayment penalty?
  • How long will it take to execute my loan?

10 Tips to Avoid During the Mortgage Process

  • Do not change jobs, become self-employed/commissioned or quit your job.
    Paystubs are needed covering a 30 day period at your present job. If you leave a salaried job and become self-employed/commissioned you would typically have to wait 2 years. Employment verifications are always done within 5 days of closing.
  • Do not co-sign a loan for anyone.
    Any changes to your credit report or status could negatively affect your ability to close your loan. Co-signing any type of car loan, student loans or other loans will result in inquiries to your credit and additional financial obligations.
  • Do not buy a vehicle
    Applying for credit to purchase a vehicle will result in an inquiry to your credit report. This will decrease your score, decrease the amount of money you can qualify to borrow and make it more expensive to do so.
  • Do not use charge cards excessively or make ANY late payments.
    Excessive use of credit cards can have negative effects on your score. Inquiries alone may lower it and balances greater than one third of the available credit limit can also lower your credit rating. Any late payments will lower your score significantly regardless of the amount due.
  • Do not spend money you have set aside for closing.
    Having enough for down payment and closing costs is critical, but so are reserves after closing. Spending this money prior to closing could result in a denial.
  • Do not omit debts or liabilities from your loan application.
    Be very honest about all of your debts and liabilities early in the loan process. Everything is checked and double checked so they will likely turn up at some point and could jeopardize your loan.
  • Do not buy furniture, appliances or household items before closing.
    Large purchases causing deductions in your bank account, inquires on your credit report or additional debt on your credit cards could cause your closing to be delayed or denied. You must wait until after you close.
  • Do not originate any inquiries into your credit.
    As mentioned before, multiple inquires on your report will decrease your score. Credit is always refreshed within 7 days prior to closing and inquires will result in more documentation being required which may delay your closing.
  • Do not make large deposits without first checking with your lender.
    Abnormal deposits or large deposits other than regular payroll into checking, savings or any financial account must have sources verified and will result in more documentation being required.
  • Do not pay off any collection accounts or charge offs prior to closing.
    This will most likely decrease the credit score immediately due to the date of last activity becoming recent. If you want to pay off old accounts, do it after closing and make sure that you validate that the debt is yours and that the creditor agrees to give you a paid in full or even a letter of deletion.

Comments are closed.