Category: Fico Scores

Kentucky First Time Home Buyer Tips for a Smooth Closing after loan pre-approval


43493504_1149130891929130_6711749112900878336_n (1)

Kentucky Home Buyer Tips for a Smooth Closing after loan pre-approvalToo Tips For Home Buyers

Tip #1: Things to Avoid Before Buying a Your First Home in Kentucky!!!

 

 

 

Here are some things to avoid during the Kentucky First Time home buying process to assure your transaction goes smoothly:

-Don’t Make an Expensive Purchase

It’s best to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewelry, or vacations until after the closing. Financing furniture with a credit card could jeopardize your credit worthiness during the time it means the most. Using cash to purchase big items can also create a problem because many banks take into consideration your cash reserve when approving your mortgage.

-Don’t Get a New Job

Lenders like to see a consistent job history. Generally, changing jobs will not affect your ability to qualify for a mortgage loan-especially if you are going to be making more money. But for some people, getting a new job during the loan approval process could raise some concern and affect your application.

-Don’t Switch Banks or Move Money Around

As your lender reviews your loan package, you will be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds. Changing banks or transferring money to another account could make it difficult for the lender to document your funds.

-Don’t Disregard Your Lenders Requirements

You may have been pre-approved for the loan but your work with the lender is far from over. Your lender will need copies of your bank statements, W2s and other paperwork. It is up to you to get it to him or her as soon as possible. Failure to submit certain qualifying documents could cause you to lose your loan and the financing you need to buy your home.

Sincerely, 

We see a bunch of clients come in that could have saved themselves some headaches if they would’ve followed these tips for buying a home.

 

 

  1. Do NOT purchase a new vehicle. (If you can help it)
    1. You may be just graduating college or getting that well deserved promotion at work and be tempted to treat yourself to that shiny new vehicle. If at all possible, fight that urge! When we are calculating your debt-to-income ratio, that car payment can possibly take away the purchasing power that you wished you had. Instead of a $150,000 house, you’re now looking at an $80,000 home.
  2. Do NOT change jobs or how you’re paid.
    1. The main reason we try to not have people change jobs is not because of the history but the possibility of the way that you were and are paid now. If you were salaried 6 months ago and now you are paid a smaller salary but with commissions, there is a good possibility we won’t be able to count those commissions since you haven’t received them for two years. So if a job opportunity arises or HR is possibly promoting you to a new pay system, weigh the costs of maybe not being able to buy a home.
  3. Do NOT deposit cash or large untraceable deposits.
    1. The old saying used to be “cash is king”. Some people still think that they can bring their mattress money or rainy day funds to closing and unfortunately that is not the case anymore. When we are going through the loan process and see a large deposit that isn’t an auto deposit from payroll, things can get a little dicey. Ever since the mortgage crisis in 2008 and 2009, the government makes us “source” funds like that. It’s their way of making sure that there isn’t possible money laundering or fraud happening. If you sell a vehicle or an item for cash, please document it as clearly as possible.
  4. Listen to your loan officer
    1. This is an extremely easy one but you’d be surprised how many times people don’t follow this. An analogy that Don tells his clients is to think of buying a home like a maze. This is especially true with all the regulations and rules they have put in place since the mortgage crisis. You, the borrower, are trying to get to the end of the maze and get into the home. We as loan officers have a better view point of the maze and can help guide you through it. If you don’t trust us and let us guide you, it can take a lot longer to get into the home or possibly do something that makes it to where you can’t get a home at all.

http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
 
Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.   
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
 
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.
Advertisements

Short sales and foreclosures equally degrade FICO scores


Short sales and foreclosures equally degrade FICO scores.