Attention Home Buyers
DO's and DON'Ts
Your loan may require updating and re-approval prior to closing. Any change in your employment, income, credit, credit history, and/assets may affect your approval status.
BEFORE PURCHASING and CLOSING ON YOUR NEW HOME
DO continue to make payments on time on your auto, credit cards, etc. This will help keep your credit in good standing.
DO maintain a paper trail. Document and explain any large or excessive deposits to your accounts (checking, savings, stock, etc.). the lender needs to know where the money came from.
DO keep pay stubs, bank statements, tax forms, etc. available should we need to update your documentation prior to closing.
DO ask questions if you do not understand your loan program and/or your loan conditions.
DO let you Loan Counselor know if you are unable to keep to your savings plan and if you may need to "borrow" money for closing. We may be able to switch your loan program to one requiring a lower down payment. Also, most of our loan programs do not allow "borrowed" funds and we may have to re-structure and/or document your closing funds according to specific Underwriting Guidelines.
DO document that your earnest money deposit has cleared your account - keep a copy of your canceled check and/or bank statement reflecting funds have cleared your account.
DO lock in your interest rate when you are 30-45 days away from the estimated delivery (closing). Please have your homeowner's insurance agent information available and provide updated documentation (pay stubs, bank statement, etc) in a timely manner so as not to delay your closing.
DO add and keep seasoned funds to your account. If you are being gifted by a friend or relative to help your purchase, do add these gifted funds to your account as soon as possible as seasoned funds rank very high when establishing your loan program with your chosen lender.
DO NOT increase your credit card balances and/or loan balances.
DO NOT apply for additional or new credit, or put balances on a paid credit card.
DO NOT absolutely make late payments on any of your accounts.
DO NOT ignore late payment and/or collection notices that you may get during the course of your loan.
DO NOT buy furniture, cars, or appliances until after closing. There will be special sales that happen throughout the year. What good is new furniture if you do not have a new home to put them in?
DO NOT lend money to family member, friends, etc. if you need it for your closing.
DO NOT store your money at home. Please place it in your bank account so that we can document your savings throughout the loan process.
DO NOT have overdrafts (NSF or bounced check) on you checking account. Please plan your finances accordingly.
DO NOT change jobs. A new job may involve a probation period, which must be satisfied before income from that job can be considered for qualifying purposes.
DO NOT run a TRW credit report on yourself. This will show up on your lender's credit report as an inquiry and must be explained in writing. Your credit scores are also reduced with each inquiry.
DO NOT attempt to consolidate bills before speaking with your lender. The lender can advise you if this needs to be done.
DO NOT pack or ship information that may be needed for the loan application. Important paperwork such as W-2 forms, DD214 forms, divorce decrees and tax returns should not be packed with your household goods. Duplicate copies take weeks to obtain.
DO NOT attempt to represent yourself. I know the Las Vegas Valley. I know what is customary and necessary in a Real Estate Transaction with your best interest in mind. The seller has an agent thinking and looking out for their best interest, you deserve to have the same. Remember the seller pays the Buyer's agent commission and it is already built into the sales price; therefore, you will pay the same sales price for your property even if you have no representation. I can save you money and time while implementing for you a smart, smooth, and successful investment.
DO Relax. I will take you through the buying process with ease and grace and will be there for you every step of the way!
FROM WASHINGTONPOST.COM about Fannie Mae's New Loan Quality Initiative:
"Beginning June 1, 2010 your lender is likely to order a second full credit screening immediately before closing. The last-minute credit report will be designed to find out whether you have obtained -- or even shopped for -- new debt between the date of your loan application and the closing. If you've made applications for credit of any type -- for furnishings and appliances for the new house, a car, landscaping, a home equity line, a new credit card, you name it -- the closing could be put on hold pending additional research by the lender.
If you've actually taken out new loans that are sizable enough to affect the debt-to-income ratio calculations used in your original mortgage approval, the whole deal could fall through."
For the full article, please visit: