6 Dont’s After Applying For a Mortgage

Once Qualified, Stay Qualified        (edit/delete)

6 Dont’s After You Apply For A Mortgage

Once you are qualified for a mortgage, you want to stay qualified.  The following are items to think about when making decisions during the buying process.

money pile1. Don’t deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable. Small, explainable deposits are fine, but getting $10,000 from your parents as a gift in cash is not. Discuss the proper way to track your assets with your loan officer.

2. Don’t make any large purchases like a new car or a bunch of new furniture. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher ratios…higher ratios make for riskier loans…and sometimes qualified borrowers are no longer qualifying.

3. Don’t co-sign other loans for anyone. When you co-sign, you are obligated. With that obligation comes higher ratios, as well. Even if you swear you won’t be making the payments, the lender will be counting the payment against you.

4. Don’t change bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is a consistency of accounts. Frankly, before you even transfer money between accounts, talk to your loan officer. bank pic

5. Don’t apply for new credit. It doesn’t matter whether it’s a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

6. Don’t close any credit accounts. Many clients have erroneously believed that having less available credit makes them less risky and more approvable. Wrong. A major component of your score is your length and depth credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. Any blip in income, assets, or credit should be reviewed and executed in a way to keep your application in the most positive light.

By following these Dont’s, you will be closer to enjoying your new purchase.

If you need to consult with Mortgage Broker or Realtor about your next purchase…..

Greg Schamp, Strategic Real Estate Marketing and Your Real Estate Advisor!!!

Advertisements

About Greg Schamp

After spending 25 years in the Luxury Automotive business, the last 11 of which were with Cadillac, it was time to take my business background and put it to work in Real Estate. I have a unique understanding of the sales process and can help buyers and sellers negotiate for a win-win solution. If you are looking for a proven, solution oriented business person, not just a realtor, then you have come to the right place. My ability to find unique solutions for marketing, targeting buyers, managing multiple clients while making each one a priority is a skill few posess. You can count on me to make sure your needs are met and communication lines are open and easy to navigate. I look forward to working with you and showing you that my team of professionals and I are "Serious About Your Success".
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s