May your loan be a FHA mortgage or a Conventional mortgage, I am finding many loan officers not prepping their clients with knowledge. I have been in the mortgage industry for over 15 1/2 years now and for some reason it seems like it has been sloppier on the loan officers side of things when speaking to the consumer.
CONSUMER ..... please pay attention to some of my concerns, it might save you headaches and heartache in the future.
# 1 concern...... When you are pre-qualified or approved by a lender, don't go out and buy anything new. The loan officer should explain this to you, but many don't. I just had a client that left their previous lender because it was like pulling teeth when they wanted answers. They are suppose to close on their loan in 2 weeks. But wait, they just bought 2 brand new cars last month and now their back end qualifying ratio is 20% higher. I can't help them now. Their only hope is with the previous lender.
Another lesson to learn? If you have been qualified by a lender and they tell you that you need more credit in order to buy, be careful in what you do. I had a buyer 3 months ago, who the previous lender told them to go out and get new credit. They went and bought a new car. By doing this, it hurt their qualifying ratios and they could buy the house that they wanted. And think about this, common sense.... even if you have new credit, 1 month old, this will not be a positive for you. By all lenders standards, you need to show usually a 12 month payment history to count that positive credit.
Another lesson to learn? The run around theory. I am hearing more and more consumers complain because they would get qualified by a specific lender who seemed very responsive leading up to the application. Once the application was taken, it seems like pulling teeth to get phone calls returned. If it's not easy to get a hold of your loan officer, this might be a reason to be concerned. If they can't give you answers to your questions, and it takes over 2 days, another reason to be concerned.
Overall, if you have a bad gut feeling or something doesn't seem right, don't be afraid to seek help from another lender. At least call a few more up and ask your questions. A lot of this information can even be found online now also. Lastly, I was just told by another consumer in California who has been shopping lenders, that many of them don't know anything about FHA mortgages. This is extremely important because the average consumer is better off with a FHA mortgage. This statement is true if you are putting less than 10% down and if your credit scores are less than 680. Just keep this in mind when shopping for your lender and what loan they place you in. A true mortgage professional is not always as easy to find as it sometimes may appear. Anyone can make promises, but can they deliver?
For more information on FHA loans, please go to this link. The FHA Expert
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!
Copyright © 2008 by Jeff Belonger