So you’ve done it. You’ve taken the first step towards the American Dream of home ownership. You’ve applied for the loan, maybe you’ve even been approved, and you’re just waiting for it to fund and the house is yours. Congratulations, you’ve cleared quite a few hurdles to get where you are. Now, however, is the time for caution because you could still kill the deal if you make some common mistakes. It makes no difference if it’s a new purchase or a refinance.
NUMBER ONE: Do not buy or lease a new car. Do not finance new furniture for your new home. In short do not take on any new debt. One of the key factors that were looked at in determining your ability to repay your home loan was your ‘Debt-to-Income Ratio’ what you earn compared to what you owe. This was one of the earliest hurdles you cleared; do not stumble over it now.
NUMBER TWO: Do not miss any payments on current debt. Your FICO (credit) scores where another early hurdle you’ve cleared. If you miss or are even late on payments at this point it will have an adverse effect on your FICO scores and can kill the deal even at this late date.
NUMBER THREE: Do not change jobs, even if it’s for a better job with higher pay. The lender has already agreed to lend you the money based on your old job and income. They are more interested in stability than your getting a better job.
NUMBER FOUR: Do not make any major purchases with cash. You are not taking on any new debt so this should be okay right? Wrong. Lenders are very concerned with your ‘asset reserves.’ Talk to your mortgage professional before any cash purchases.
NUMBER FIVE: Do not ignore lender/broker requirements. Know what they expect from you and take care of it. It is very common for there to be conditions attached to your approval. Many of them will be things the broker or loan processor will handle. Some will require you to provide information, sign or even re-sign documents. It can be frustrating, but you’re almost there.
NUMBER SIX: Do not forget your Hazard Insurance. This is an often forgotten task by buyers. Before closing the lender will want to see an insurance binder showing you have coverage on your new home. Get it early and you won’t find yourself scrambling at the last minute to take care of it. It can delay closing if not taken care of.
You’re almost there, so if you can remember these six simple things to avoid until after your loan closes, you should be fine.
Steve & Stacie Scheunemann
Residential Loan Specialists
ViewPoint Financial Group
(909) 238-3787 Steve Cell
(951) 285-4096 Stacie Cell
(909) 987-9945 Fax
steves@viewpointfinance.com
Steve and Stacie Scheunemann are a husband and wife team of real estate professionals with five years experience.
Stacie has been an educator, business owner, and professional organizer.
She is a Nutritional Herbalist who keeps her family and friends healthy and eating well. Hers is the strong will and relentless drive for perfection that makes the team.
Steve is a Marine veteran who served in the Gulf War and Somalia, as a helicopter crewchief. After the Marines he followed in his father and grandfather’s footsteps and became a police officer. As a police officer he received many letters of commendation from the department and the community.
He’s been a Technical Instructor in the telecom field and even worked as a cowboy on a Texas cattle ranch.
Both are active in the community, volunteering for the Cub Scouts and fire department with their ‘Fill the Boot’ Campaign getting all seven kids into the act collecting donations outside a local mall side-by-side with the firemen.
Together they make a formidable team. Working side-by-side they accomplish great things.
