Real Estate Agent with McColly Real Estate

1.  Don't buy or lease an auto.  The lender looks carefully at the debt-to-income ratio.  A large payment such as a car lease or purchase can greatly impact those ratios preventing the buyer from qualifying in some cases.

2.  Don't move assets from one bank to another.  These transacations may show up as a new account and would need the source of fund disclosed and documented.  The lender can verify each account as it stands then if you wish, you can consolidate the accounts after the loan process is complete.

3.  Don't change jobs.  A new job may involve a probation period, which must be satisfied before the income from that job can be used or qualifying purposes.

4.  Don't buy new furniture or major appliances for the "New House."  If the new purchase increases your debt load, it can disqualify you from the loan or deplete your funds to close.

5.  Don't run a TRW credit report on yourself.  This will show up on your lenders credit report as an inquiry and must be explained in writing.  It may also lower your credit score disqualifying you from the loan you desire.

6.  Don't attempt to consolidate bills before speaking with your lender.  The lender can advise you if this needs to be done.

7.  Don't pack up or ship off information that is needed for the loan application.   Important paperwork such as W-2 forms, DD 214 forms, complete tax returns, divorce decrees, bankruptcy papers and bank statements should not be packed or sent with your household goods.  Duplicate copies can take weeks to obtain.

Comments (7)

Jason Wade
SMC Home Finance - Wilmington, NC
You've hit the nail on the head with all of these tips Megan!  Great post of information that a lot of buyers may not know.
May 08, 2008 04:26 AM
Michael Wayne Jackson
Coldwell Banker - Novato, CA
Broker - Seniors Real Estate Specialist Novato
Great post, we all need to remind our clients of these important steps.
May 08, 2008 04:34 AM
Adam Brett
The Adam and Eric Group - Fullerton, CA
The Adam and Eric Group, Fullerton's Finest
Good post - however some people will need a credit report before buying in case they need to fix something.  You should pull credit once a year to make sure nothing was reported incorrectly.
May 08, 2008 04:35 AM
The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE

Welcome to ActiveRain!

If you would like a few tips on getting the most out of ActiveRain, please visit my blog Welcome to Active Rain.  It has a few simple steps of what to do now that you have joined.

If you ever have any questions, just let me know.

Troy Trumm
May 08, 2008 06:11 AM
Ted Mackel
Keller Williams Realty Simi Valley - Simi Valley, CA
Simi Valley Real Estate Agent
Welcome to Active Rain.  Make sure to check out other blogs so you can see what works and what does not.
May 08, 2008 11:17 AM
Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...

Excellent tips!

I've heard from colleagues, per your tip #1 being violated by their clients. People get silly and go out and buy a new car in the middle of the home search process and throws their mortgage pre-qualification into a tailspin!

Thanks for this blog and welcome to Active Rain! 

May 08, 2008 01:30 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

We invite you back to ActiveRain in 2018!

Much has changed since you last posted to ActiveRain.  I encourage you to take another look at the website.  

  Best to you!

Apr 18, 2018 08:44 PM