Buying a house? Top 10 Dos & Don'ts for getting the loan CLOSED!

By
Real Estate Broker/Owner with Kristen Correa Real Estate & Reedy Creek Realty Services 0514644

Lenders LOVE to fly through a smooth lending process just like home buyers do and just like agents do. Lenders encourage you to plan ahead and then stick to the plan through closing so the deal doesn't grow legs and walk away.

Home LoanHere are the top 10 Do's and Don't during the loan process that I hear lenders flutter about saying while helping prep my buyers for a smooth move!

DON'T APPLY for any NEW credit! Until you MOVE!

DON'T MAX OUT or over-charge existing credit cards!

DON'T CLOSE accounts! Until. You. MOVE!

DON'T CONSOLIDATE DEBT to one or two cards!

DON'T CHANGE OR QUIT your job!

DON'T make LARGE deposits into checking or savings!

DON'T make any LARGE purchases! NOT. ONE!

DON'T CO-SIGN on any loans! Until you MOVE!

DO stay current on existing accounts!

DO call an EXPERIENCED REPUTABLE loan officer!

 

And the BONUS of the list: Call an experienced Realtor®, like me, to make a smooth move!

p.s. Did you know not one time, ever, has a BUYER paid me? BUYER representation with Ueckert Realty costs a buyer NOTHING. ZERO. ZIP!

Posted by

Kristen Correa Real Estate

Comments (23)

Kristen Correa, Broker
Kristen Correa Real Estate & Reedy Creek Realty Services - Keller, TX
I love coffee & real estate. I am out of coffee!

Bernadine - thank you. It is important. It is too easy to get off track without even knowing. One time a buyer changed jobs. HUGE raise. But different job, different industry. I thought I would never get it closed. Fortunately, he had reserves on his reserves. But anyone else, that job change with raise would have been an epic fail on the home buying side.

May 02, 2013 11:07 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

This is great information for the consumer. So many people don't understand this and how changes in purchasing and spending can affect your credit score and keep you from getting a loan.

May 03, 2013 12:25 AM
Kristen Correa, Broker
Kristen Correa Real Estate & Reedy Creek Realty Services - Keller, TX
I love coffee & real estate. I am out of coffee!

Correct, Debbie. Even what consumers think is a good thing to do, and under normal circumstances is a good thing to do, like getting large chunk of money to deposit!!!! Or getting a car with a new loan that is a LOWER payment! Or getting a new job that pays MORE! IS NOT NECESSARILY GOOD FOR A MORTGAGE LOAN! But it is what it is. He who has the gold makes the rules. We just have to work within their guidelines!

May 03, 2013 01:11 AM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Kristen -- this is a great list you have put together.  The one point I would make is that many lenders are requiring letters of explanation for ANY deposits that are direct payroll, or clearly coded transfers from another account held by the borrower.  We had one that asked for such letter down to about $75.00!!  Hope you have a great weekend!

May 03, 2013 06:36 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Kristen:  Each and every piece of info you provide here is vital to  know and follow.  I think collectively they point to the importance of finding and working with an experienced knowledgeable Lender ... WELL AHEAD of actually starting the home search.  They can explain and clarify all the points you make and then personalize them to the individual Buyer.  The further out the potential Borrower does this, the better.  Some actions .. and gaining the responses needed ... take time. 

Gene  

May 03, 2013 06:43 AM
b m
Crofton, MD

Great list Kristen! This is a list that should be provided to every home buyer when they make their initial home loan application. Thanks for sharing this!

May 03, 2013 07:36 AM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Good evening Kristin - great list for all borrowers! Thanks for sharing!

May 03, 2013 08:47 AM
Trisha Bush-LeFore
Preferred Properties Land & Homes - Walla Walla, WA
Providing Realtor Services in the Walla Walla Area

Great list! You'd be surprised how many people can't think of things like these on their own. Have a great weekend!

May 03, 2013 09:20 AM
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Kristen, I wish every buyer would read this! I've had a few open up credit lines to buy new furniture for their new home, which didn't happen because of this.

May 03, 2013 10:06 AM
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Kristen - What a great post and I am a little surprised how many loan officers don't share this information with home buyers.

May 03, 2013 12:00 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Kristen -- This is one thing I emphasize with cleints ...It is important for buyers to understand what they need to do to close.

May 03, 2013 12:55 PM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in German and Real Estate * M.A. ABR ASP

Hi Kristen, indeed a great list of the top 10 Dos and Dont's Before Buying a House. It's also tempting to start shopping for new furniture, appliances etc. after the contract is ratified ... but don't. You gotta wait until after closing or there won't be a house to arrange that furniture in!

May 03, 2013 01:03 PM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Kristen,

 

That is an excellent list and your post is definitely worthy of a re-blog!

May 03, 2013 01:43 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Kristen, DON'T MAKE THE LARGE PURCHASES - is the key! Many buyers want to buy home with 2-car garage and have only one car, so they want to buy THAT DREAM CAR before closing! And we all know what happens!

May 03, 2013 04:06 PM
Lisa Friedman
Great American Dream Realty - Essex, VT
30 Years of Real Estate Experience!

Kristen, this is very good advice for buyers.  I once had a buyer purchase a new car a few weeks before closing thinking that it wouldn't show up on their credit report.  Guess what?  It did.  The 40 year old couple had to get a 'gift' from mom and dad in order to continue to qualify for the home, but it closed.  They were lucky.

May 04, 2013 12:24 AM
Kristen Correa, Broker
Kristen Correa Real Estate & Reedy Creek Realty Services - Keller, TX
I love coffee & real estate. I am out of coffee!

Hi everyone, thank you so much for your comments. It is amazing how we can think we are doing the right thing, like pay off and close out a credit account or trade in a car for another with lower payments, or get a new job in a new industry with a raise.... but you can't really change your financial picture at all while in application process and sometimes it's just really hard to get a buyer to sit still for 30-60 days while awaiting the sale, huh?

So I vote let's all work hard to close 'em much faster! SEAL. THOSE. DEALS!

May 04, 2013 01:08 PM
David Opoka
Gilbert, AZ

Ever had a deal where just about to go to closing and they go out and buy a new car.

Sorry you can't have the house you no longer quailfy.

May 05, 2013 04:47 AM
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

This could work as a handout, thanks for sharing these good ideas and all the best to you.

May 05, 2013 09:21 AM
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

The perfect list, Kristen!  I am linking this to my Twitter and Facebook pages.

May 15, 2013 01:08 PM
Kristen Correa, Broker
Kristen Correa Real Estate & Reedy Creek Realty Services - Keller, TX
I love coffee & real estate. I am out of coffee!

David, Fred and Charles Stallions RE - thanks for the comment. Glad you appreciated it. I have had the car issues..... my poor family member... and the poor finance guy at Ford I nearly ate him alive because he literally told our mutual client car-house buyer it won't hurt his home buying. Pft.

May 17, 2013 09:55 AM