Buyer Tips: 5 Things To Avoid During Application
Fannie Mae recently implemented a new Loan Quality Initiative (LQI) that involves some important changes to be communicated to home buyers. Lenders will now be required to re-pull credit and re-verify employment immediately prior to closing day.
Here are some good old-school reminders for our buyers to avoid trouble after pre-qualification or closing delays -- even after underwriting approval:
-
Don't apply for or take out new credit. Any credit pulls will need to be explained and recalculated in debt-to-income ratios. That includes new furniture or appliances, as well as cars, boats and motorcycles.
-
Don't change your employment. Now is not the time to become 1099/ independent contractor, retire, or change careers.
-
Don't co-sign for anyone else. You can be held responsible for the full liability.
-
Keep your bank accounts steady. No overdrafts and all large non-payroll deposits will need to be sourced. Avoid spending your funds needed to close.
-
Don't max out your credit cards or stop paying bills.
My team works hard to ensure a smooth, on-time closing and we will be communicating this information pro-actively to each client. When in doubt, ask your mortgage consultant.
;)
;)
