MARYLAND AND NORTHERN VIRGINIA HOMES FOR SALE ARE PRICED RIGHT AND PLENTIFUL.  However, home buyers must follow some rules to make sure that your loan application will be approved and you'll be able to close on your real estate purchase in Northern Virginia. 

MARYLAND AND VIRGINIA HOME BUYERS are very fortunate to have a wide selection of mortgage lenders in our area.  Homefinders.com works with every knowledgeable, experienced and accessible loan officers.   Unlike many areas across the country, Homefinders.com is always able to refer our buyers to experienced loan officers that with mortgage companies that offer the type of loan that you wish to use. 

TYPES OF HOME LOANS AVAILABLE IN MARYLAND AND NORTHERN VIRGINIA. Homefinders.com home buyers have successfully purchased homes with a variety of loan types, Conventional, FHA, VA, USDA, FHA-203(k).  From time to time, there are down payment assistant programs or grants available for qualifying home buyers.  Homefinders.com researches these programs and makes sure that our home buyers use resources for which they are qualified by income and other criteria. 

DON'T RISK A LOAN DENIAL.  Home buyers must do your part to ensure that your mortgage loan will be approved and you'll close your home purchase with a minimum of delay.  We advise our buyers about cerain actions that could cause a loan denial. 

HINTS TO HELP WITH YOUR MORTGAGE LOAN APPROVAL
Through telephone calls and e-mail we receive many questions from home buyers about searching for a home, financing a home purchase, Maryland or Virginia demographics and a thousand other questions. Below are a few questions we recently received.  They just might help you get to the settlement table.

SHOPPING FOR A NEW CAR AFTER MAKING LOAN APPLICATION
GIFT MONEY FROM PARENTS.  CAN I USE IT?
CHANGING JOBS PRIOR TO BUYING A HOME AFTER MAKING LOAN APPLICATION

SHOPPING FOR A NEW CAR

Q. Is it O.K. to buy a new car before I buy a home??
A. If you have made loan application to buy a home, you should delay any major purchases until after settlement.  Your initial loan pre-qualification and subsequent loan approval is based on a review of your credit report at the time of loan application.  If your credit report changes during the loan approval process, you may no longer meet the lender's criteria for qualification. 

Q. How would the lender know?
A. The mere act of SHOPPING for a new car will likely be recorded on your credit report. New car dealers (used dealers also) routinely ask for a driver's license to permit a test drive. With the driver's license, they often, without your permission, pull a quick credit report. This will be recorded on your credit report as an INQUIRY and may cause your mortgage loan to be denied. At the very least, you'll have to write a letter of explanation.

Q. Why does the mortgage lender care if I'm shopping for a new car?
A. Most home buyers are buying a home within certain loan limits based on their income and a percentage of that income as debt. If the mortgage lender believes that you might also be buying a new car, you may no longer qualify with the additional debt. Best to wait until after settlement to buy the new car.

GIFT MONEY FROM PARENTS

Q. My parents are going to give me $10,000 to help with my down payment. Should I deposit that money in my bank account?
A. It depends on when they plan to make the gift. If your parents gift you the money several months prior to making your home purchase, you will want to let the gift money "age" for at least 4 months prior to making loan application.

Depending on the amount of your down payment and the type of mortgage loan you plan to use, your lender may require that you have a percentage, usually 5% of the purchase price for a conventional mortgage, of your own money. While the $10,000 will surely be welcomed, you must show that you have the required down payment without including gift money. So, if a gift is made, it should be in your bank account for several months. When you make a mortgage loan application, your lender will require 2-3 months prior bank statements. The money must be included in your bank balance statement for the oldest month.

Q. I need the gift money from my parents for my down payment. Why does the lender care where my money came from?
A. Lenders are under a great deal of scrutiny by the government to "source" large deposits of money. Any large deposits will have to be documents carefully to show a good paper trail of money movements.

Q.  I need the gift money for my down payment.  What should I do?

A.  Be open with your loan officer that part or all of your down payment is coming from a family gift.  FHA permits gifts from family for down payments.  This may be a good choice of loan type for your needs.

CHANGING JOBS PRIOR TO BUYING A HOME

Q. I have been offered a job with a good pay increase. Can I take it even though we have already made loan application?
A. As long as you still qualify for your mortgage loan, which with a pay increase, you would, it is usually not a problem when a borrower changes jobs, as long as the job is in the same field.  However, you must make your loan officer aware of your plans.  You will probably need to be "on the job" and receive a pay check prior to closing on your home purchase. 

Q. I have a new job and my employer wants me to start two weeks after my home is due to settle. Can I still go through with the purchase?
A. Probably. However, your mortgage lender may require that you provide them with a pay stub showing that you have started your new job prior to settlement. This may cause a delay in settlement, but only until you receive your first pay check. This is often the case with relocating home buyers.

FOLLOW YOUR LOAN OFFICER or BUYER'S AGENT ADVICE when making loan application and you will probably avoid serious mistakes that would cause you delay or loan denial. 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.