One of the most often-heard complaints about lenders is "Bait and Switch". Does it happen? You bet. But, I'd being willing to bet it doesn't happen as often as we might think. The next time someone starts giving a bad rap to a lender for a giving them a surprise at the end of the loan process, you might want to ask them to tell you more.
In my experience, the lender is not always the culprit. It can actually be the borrower who causes the loan to change at the last minute. Here are the three most common mistakes that people make while in the process of getting a loan to purchase a home or condo:
1. Making a large purchase such as a houseful of furniture or new appliances and running up their credit card balances just before the close of escrow. This can create a large fluctuation in monthly payment that can seriously affect the borrower's debt to income ratio. And, if it maxes out credit cards, the FICO scores could drop enough to disqualify the borrower from the loan program they originally qualified for.
2. Adding a new loan to your credit such as a car loan. Again, this can cause your lender to have to shop for an entirely new loan program for you because they can no longer justify that your income will suffice for your existing debt and your new home loan.
3. Either husband or wife decides to quit their job before escrow closes so they'll have time to pack up and move into the new home. If you're qualifying for a loan based on two incomes, this can make your loan disappear just before closing. You see, most mortgage companies will make a final phone call to your employers just before they fund your home loan. So you went through the entire process for nothing and your lender is left to scramble for a new loan for you.
These are just three classic reasons why the loan you thought you were getting is no longer available to you. There can be other reasons, too. Mortgage companies frequently pull loan programs. So, the program that exists today, may not exist tomorrow.
All of the above reasons are the reason you need to work with a lender you can trust to work for your best interests. If you need help in finding a lender you can trust with your home or condo financing needs, please give me a call. As a REALTOR® in Orange County, California it has been my privilege to work with some of the best lenders in the business. I'd be happy to refer you to a lender who will provide you with excellent service. Just give me a call. We'll discuss your specific needs and I'll introduce you to just the right person to assist you in getting your home or condo loan.
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Marlene Bridges, REALTOR® 800 777-1775
South Orange County Real Estate Website
Orange County Seniors Lifestyles Blog
SRES - Seniors Real Estate Specialist®
CRS-Certified Residential Specialist®
President - Laguna Hills/Laguna Woods Chamber of Commerce
Marlene is a highly experienced South Orange County CA REALTOR® specializing in residential Real Estate and the sale of Homes and Condos in South Orange County, California and Saddleback Valley cities of: Laguna Woods, Laguna Hills, Laguna Niguel, Laguna Beach, Rancho Santa Margarita, Lake Forest, Dana Point, San Juan Capistrano, San Clemente, Aliso Viejo, Mission Viejo.
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