Hey Folks!

This post is for consumers and real estate agents alike. As we get closer to spring (I don’t care what the groundhog says) and 15-year fixed rates are under 5% and 30-yr fixed rates are under 6% more folks will find themselves in the market for a new home (or refinance a current one). While many of the lender requirements have changed the basics have not. Remember that this a very simple list. More requirements may pertain to your situation.

Make Sure You Do -

• Keep paying your bills on time including any mortgage, car, credit cards, etc. even if they’re being paid through the new loan. Remember that closing times (unless you have a “clear to close” from the end Investor) is just an estimate. Small things like a Investor being backed up can cause a delay in your closing costing you possible late fees, penalties, and in some cases the new mortgage itself.
• Inform your Loan Officer in advance of any employment or income change. It is not uncommon for an Investor to do a final employment check the day (and in some cases 10-days after closing). I have seen so many deals fall apart due to the client leaving their job a few days before closing. In many cases you Loan Officer can “fixed” this but we need to know.
• Keep copies of all pay check stubs you receive.
• Call or email your Loan Officer if at anytime you are unclear or have a question about your loan.

Make Sure You Don’t -

• Change your employment status without notifying your Loan Officer first. This (as you can tell) is the cause for most “approved” loans not closing.
• Apply for something in which your credit report needs to be pulled. The end Investor will often “pull” a new credit report the day of closing and if the underwriter sees any new credit inquiries it is a major red flag. Just wait a little bit to buy that furniture. There will always be a sale and it can wait. Your mortgage may depend on it.
• Act as a co-signer on a loan. I feel that co-signer is a very misunderstood word. It should be joint owner. If payments are not made it effects both the borrower and the “co-signer” in the exact same way. I have seen many times folks with perfect credit with a car repossession or home foreclosure due to “co-signing” on the loan.
• Make large purchases such as additional real estate, vehicles, boats, motorcycles, etc. So many times when I get clients approved they feel it is a ticket to go out and buy stuff. While you might want to PLEASE just wait until we close on your mortgage.

Pretty simple, isn’t it? Well you would think so but if your a consumer you may not think of these things and if your a real estate agent I sure hope it has not happened to you. I have seen to many people lose out on a great deal by not following these simple, yet effective steps.Let’s keep the American dream alive and buy a home!

Happy Selling (and financing)!

Tony Grego - Indiana Mortgage Broker