Skip to main content

Cringe-worthy Mistakes to Avoid during your Loan Process







Cringe-worthy Mistakes to Avoid during your Loan Process 

Annette Bui| Updated May 26, 2020 | Mortgage Programs 101

 Some critical things to remember when you are in the middle of getting a mortgage loan.  Many consumers do not realize the significant impact this may have on the ability to qualify and get their loan funded. Below are some important things to NOT do:

 Employment

Acquiring a new mortgage loan means the primary goal is to show a lender you have consistent cash flow such as your job to repay the debt. Changes in jobs during the loan process or transferring departments can impact your qualifications. I have seen clients switch from getting paid as a W2s employee to being “promoted” to a 1099 position with a higher commission payout. This would be an example of how job change will adversely affect you because lenders would then need to see a 2-year average history of your new income as a 1099 independent contractor.

Large purchases

 Acquiring a new purchase will affect your ability to qualify especially if you acquire a new debt to pay for a washing machine, car etc. Furthermore, the cash reserves you have on hand is assumed to be depleted and lenders like to see you possess at least 2-6 months of cash reserves in the event of an emergency.

Banking

Transferring cash around to different bank accounts mandate issues with having the source where the monies are being moved to and the reason why. Avoid large deposits up to $1,000 and/or lumping deposits in the form of cash and checks combined into one transaction.

 Paying off debt

 Paying off debts is not always a good thing in a lender’s eyes because government sponsored entities such as Fannie or Freddie will require sourcing where the funds came from to pay off the debt in addition to the credit scores changing.

 Marital Status

 Any marital change status can impact your ability to get a loan for states that are community property based. For example, California is a community property state and during a mortgage transaction the title company will need to include your spouse on the title report. Last name changes need to match the most recent corresponding change to be recorded properly along with necessary marriage certificates without a name change and/or relevant divorce decrees.

 

 

Comments

Post a Comment

Popular posts from this blog

How do Renovation Loans work?

  How do Renovation Loans work? Annette Bui| Updated June 05, 2020 | Mortgage Programs 101 The purpose of renovation loans or 203k is that it allows both homeowners and home buyers to build the cost of doing a rehabilitation project on a house and roll it into the mortgage. The benefit of this program is that it makes the upgrade process more affordable without having to incur expensive credit card interest and maxing out your debts. You can finance the cost into your mortgage at a lower interest and have a fixed payment. Additionally, the projected renovation updates will improve the value of the collateral and better secures the lenders position. This is designed to help save both time and money for homeowners to gain access to more prospective homes rather than be limited to the homes already in good condition. How can a Renovation Loan be used? The scope of the rehabilitation loan covers expenses of a minimum of $5,000 in costs and up and can be used for virtually a...
Post a Comment
Read more

How do Condos measure against Single Family?

How does a condo measure up against a Single Family? Annette Bui | Updated April 28, 2020 | Lifestyle Mortgage Blog While you shop for your dream home, the possibilities may seem overwhelming. Whether you want to be near your hometown, close to work or proximity to quality school districts. One of the bigger questions as you venture to different neighborhoods is the lifestyle differences between choosing a town home or a single-family residence. The debate brings some serious considerations into light such as amenities or association dues as opposed to guard gated neighborhoods or extra space for a growing family   Here are a few factors to consider while you list your pros and cons and review your options. Single Family or Condo? The first priority is to determine where you want to live, whether it is in a large urban city like New York or a suburb in Long island that means it would take a bit more of a commute to get to downtown? These questions are all essential becau...
Post a Comment
Read more

My Story

My Dream is to advocate for your family:     I take a personalized consultative approach to helping you get approved faster in the mortgage shopping process, offer a more streamlined process, generating solutions that are useful to consumers to build confidence in the mortgage shopping process. My personal goal is to find new and innovative ways to help families identify their mortgage based upon current market trends, personal need, client oriented approach to help families thrive and improve their most valuable investment. I see myself as a personal mortgage Guru, here to offer helpful information, better ways to save. Developing unique tools, investment strategies that revolve around your personal needs in a mortgage. As your personal mortgage guru, I can provide a customized approach to help guide you through the qualifying process, credit improvement, tips and tricks to gain the extra savings on your loan. My knowledge and support is all referral based and it is...
1 comment
Read more