At Advanta Real Estate, we try and work with our buyer's and seller's for the long haul. There are so many steps in the real estate process that we try to counsel our clients all the way through. Below I've listed some of the biggest do's and don't's of real estate.
The 10 Do's:
(1) Do shop for your loan. While I will refer a few lender's I've done business with, get Good Faith Estimates from different sources and then compare them to see who is giving the best rates and services.
(2) Do Interview real estate agents, mortgage brokers, lenders and loan officers, settlement companies and/or settlement attorneys to determine the best professionals to handle your needs.
(3) Do read and understand all paperwork involved before you sign anything. Remember, you're an adult and you can't go back and say "I'm sorry, I didn't understand that".
(4) Accurately report all of your debts. If you don't, it's fraud!
(5) Be honest about all sources of funds that you will use to purchase your home.
(6) Be honest about all credit problems that you have or have had in the past. Many loan officers can guide you on how to raise your score if needed. The loan officer will see your credit when they pull it so be up front, honest and truthful.
(7) Be cautious about all unsolicited loan or refinance offers that show up in your mail or email. Many of these are teaser's.
(8) Always make payments on time even if you are in a dispute with your lender or loan servicer. Keep that credit score high. It will save you hundred's if not thousands of dollars per month in the long run.
(9) Always contact your lender or loan servicer if you are or will have problems paying your mortgage. How you manage your debt can be a deciding factor. The lender's want to know up front about any issues that you may have at paying back your debt. They have different repayment plans that may fit your current situations.
(10) Do study and understand how title will be held: ( Sole, Tenants in common, Joint tenants, Tenants by entirety, etc.
The 10 Dont's:
(1) Don't sign any blank documents.
(2) Don't overstate your income.
(3) Don't overstate your length of employment.
(4) Don't overstate your assets.
(5) Do not alter your income tax returns.
(6) Don't list fake co-borrowers on your loan application.
(7) Don't provide any false documentaion.
(8) Don't lie about occupancy. ( Don't claim that you're buying a primary residence if you plan to rent it out.) Lenders do conduct loan audits within 60 days of closing to confirm borrower is living in the property.
(9) Don't make large cash deposits into your checking or savings account in the 2 (preferably 4) months prior to your loan application.
(10) Don't apply for, or open any new credit lines while your home loan is in progress. ( So if the cashier at Kohls says " we'll give you 15% off if you apply for a Kohl's credit card, just say No Thanks ).
Understand that items 2 - 9 are fraud! Fraud means that it's not just a "Sorry, I didn't mean to say that". It means that it's a penalty under the law that is usually a felony and may (and probably) will entail jail time. Take these items seriously!
There are other "Do's and Dont's" so give us a call to discuss them with you.
ADVANTA Real Estate
Helix Properties, LLC
(602) 218-4361 (fax#)