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

Popular posts from this blog

10 Legit Online Gigs to Make Cash in 2020

5 Legit Virtual Jobs to Make Cash in 2020   Annette Bui| Updated July 7, 2020 | Make Money   Are you over living paycheck to paycheck and always worrying about money? Grab my FREE Budget Cheat Sheet and take control of your budget today! More and extra of us are searching for respectable online jobs that we can work remotely. It can be challenging to discover workplace jobs when you have children or other commitments and discovering an online job can provide you so much greater freedom and flexibility to earn extra money.   Affiliate Marketing Affiliate advertising is where you can earn a commission from merchandise and offerings that you recommend to your readers.   Products or Services You can create your personal merchandise or offerings and promote them thru your website, and many recommend that the fine way to make money from your blog is to do this.   Blogging You’re currently studying online blogs that earn top bloggers over $5,...

Little Known Difference between Interest Rate and APR

        Little Known Difference between Interest Rate and APR       Annette Bui| Updated March 21, 2019 |  Mortgage Programs 101        On e of the first things consumers want to know is what is the interest rate? When comparing lenders and finding out which loan product works best for you. One of the most important factors is to look at what the Interest rate as well as the APR or annual percentage rate.  While both figures will express how much you are paying on the loan, they do not mean the same thing.  The interest rate is the cost for the principal amount borrowed on your mortgage loan. This can be either fixed for 15, 20 or 30 year term.                   The APR, short for annual percentage rate tells you the total cost of financing your loan including any fees, discount costs that are financed into the loan. This means, when you see an advertis...

Simple ways to determine if it is WORTH it to refinance!

Simple ways to determine if it is WORTH it to refinance!   Annette Bui | Updated March 21, 2019 | Lifestyle   Why would people consider refinancing? Will your interest rate be the very first reason? I genuinely believe you 'd like to be able to save at least half a percent or at least $150 a month if you want to refinance. The reality is that when you refinance, the costs could range from 2-4 per cent anywhere, so you really want to make sure that the savings have a substantial benefit. Consider the Payoff benefit. Will you be there for 5- years? Or maybe even extended refinancing?  If you are going to be there for a very long time, then it will make sense because you will get a substantial amount of money over the duration of your loan that is equivalent to thousands of dollars. Do you know the substantial net savings benefit? Yeah, when you do a refinancing threes two forms of costs incurred, reoccurring expenses are like your taxes and premiums and fees, so you...