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6 Ways You Can Kill Your Loan in the Middle of Your Orange County Home Purchase

By
Real Estate Agent with Donovan Blatt Realty 01267479

6 Ways You Can Kill Your Loan in the Middle of Your Orange County Home Purchase

 

Ask any real estate professional what the top problem is in getting a purchase closed today, and most of them will tell you it's financing.

Gone are the days of easy qualifying and easy financing with no need to prove your income or your assets.

I've been around mortgage financing for over 30 years as it's the family business, and I've seen a few things that are likely to kill a deal even for a well-qualified buyer.  These are things that buyers should know and avoid so that they don't lose out on purchasing their new home.

6 Things to Avoid So You Get your New Home

 

  1. Don't buy a new car - this may sound silly, but increasing your debt load may cause you to be ineligible to purchase your home.  If you want a new home, wait to buy the car until after your home purchase is done.
  2. Don't run up your credit cards - now is not the time to buy the new fridge and furniture for your new home.  This too can skew your debt ratios and cause you not to qualify for your mortgage.
  3. Get new credit cards - the mortgage company may frown on this as it allows you to create more debt.
  4. Take out a new loan of any type - perhaps you're starting to see a theme.  Don't incur any new debt in the middle of a home purchase.
  5. Increase the amount owed on a home equity line of credit (HELOC).  Unless this is planned for your down payment and your loan officer is aware of it and has included it in their consideration when qualifying you.
  6. Get a new job, especially in a new industry - mortgage companies typically want to see recent paystubs, and a new job could delay or prevent closing, especially if the mortgage company wants to see a two year employment history in a particular industry.

The best rule to follow if you want to be like the couple below and purchase your new home, is keep everything status quo and don't make any financial changes until after you have bought your new home.

If you would like more information on buying an Orange County home or would like a referral to an experienced mortgage broker, please contact Christine Donovan at 714.319.9751

 

 

 

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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? For more information see Options to Foreclosures, understanding short sales or contact me at christine@donovanblatt.com to discuss your options.

If you want to buy a home or to list your property for sale, please click Newport Beach homes, Costa Mesa homes, Huntington Beach homes or Orange County homes.  Click the link if you are interested in buying a home at a courthouse auction sale.

Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

Click Orange County homes for sale to view all OC homes for sale.

Comments (9)

Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

These are great tips and so important.  A lot of times buyers don't even think before they make one of these mistakes.

May 30, 2010 04:28 PM
Samantha Davault
Alexander Chandler Realty - Fort Worth, TX
Fort Worth, TX

Christine- Thanks for posting these.  They are truly important to remember and many buyers don't understand how doing one of these just might blow it for them. 

May 30, 2010 04:35 PM
Billi Evans
Murney Associates - Springfield, MO

Thanks for the tips. Unfortunately to many buyers find these out after they get turned down for their loans.

May 30, 2010 06:01 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Joan - Unfortunately, I've seen each of these things happen. Now we try to educate our buyers.

Samantha - Most buyers really don't understand what they can do to wreck their chances.

May 30, 2010 06:01 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Billi - That's too true.

May 30, 2010 06:02 PM
Carra Riley & Declan Kenyon
Brokers Guild Cherry Creek Ltd - Westminster, CO
Helping people Transition at all ages!

Christine....Your list is a perfect blueprint for anyone a loan in process.  Great advice!

cosmic cow

May 31, 2010 08:17 AM
Lori Churchill Cofer
Beasley Realty - Pullman, WA
Realtor - 509-330-0086 - Pullman, WA

Christine,

 

Thanks for these important tips.  Nobody should want to learn these ideas the hard way!!!

 

Lori Cofer

May 31, 2010 11:38 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Hi Christine!  I love this list--it is even more imperative today to stay away from credit during the mortgage application process than EVER before.  It takes ALOT of preparation and counseling to get that point across too--especially when they're just dying to buy new furniture for their new home!

Thanks for the list!

Jun 02, 2010 05:10 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Carra - That's what I was trying to do.

Lori - This really isn't something you would want to learn the hard way.

Debe - Thank you.  It's tough for people to understand the damage they can do to themselves by being impulsive in the middle of the process.

Jun 02, 2010 05:19 PM