Wednesday, May 29, 2013

6 "Not-To-Do" When Applying For A Mortgage Or While In Escrow.

Here are your 6 "Not-To-Do" When Applying For A Mortgage Or While In Escrow so you won't sabotage your mortgage loan.

This may sounds strange, but I see lots of people working against themselves in a home purchase. How? Just be sure that you 'don't do' certain things before or when applying for a loan or in while in escrow.

For example, the following 6 things:

1. Don't pay off your bills. That's right. We are talking about the big bills. Ask your loan officer which bills to pay, and will show you the best way to pay off bills so there's proof they have been paid. For example, do not pay off collections and charge-offs. Ask your loan officer how to deal with those if necessary for loan approval because paying them off may trigger an even lower credit score.

2. Don't apply for new credit, new accounts, co-sign for a loan or even change your name or address. In other words, don't raise any red flags. The less activity on your report, the better.

3. Don't make major purchases of high ticket items like a car or home theater system because it can torpedo your ability to afford a home.

4. Don't max out your credit card(s). Keep your balances below 30% of their available limit all times during the loan process. Keep all your cards leveled to the same ratio of 30%. Not one card at 90% and the other at 20%.

5. Don't change jobs. Why? It slows the job process, especially if it is a different line of work or a lower rate of pay. If you are an hourly employee, do not work fewer hours. You will be asked to produce your pay stubs.

6. Your money. Leave your money in the same bank until your loan is closed. Don't make unsourceable cash deposits [hard to trace, hard to explain] to your bank account. Deposits to your account, larger ones, that are not payroll or direct deposit income must be documented and sourced. Don't spend the money for your down payment.

Richard Bazinet - Realty ONE Group - Phoenix Scottsdale Real Estate

6 "Not-To-Do" When Applying For A Mortgage Or While In Escrow.