Financing Your Home

Getting financing for your new home is a HUGE part of making sure the transaction goes smoothly. There are so many little things that can go right or wrong. I have noticed that it is often a good loan officer and processor that make the difference! I have several great lenders that I enjoy working with and would love to give you a good referral so you know you are taken care of.

Personally, I appreciate the lenders that go above and beyond – the loan officers who check everything up front and look at it like an underwriter does. That way the loan is smooth sailing and goes in and out of underwriting quickly.

money pick

There are several tips that you can do to avoid any hiccups in the underwriting process.

1- The underwriter looks at all bank statements for the last two months. Make sure there are no odd deposits or withdrawals. Banks are suspicious of unusual activity because they need to make sure you are providing your down payment and that you can afford the home. If you do have an odd deposit or withdrawal (for example a tax refund), then make sure you have a copy of the deposit/withdrawal so you can document the money trail.

2- DON’T take out new credit while you are buying your home. The banks look at your debt to income ratio to make sure you qualify and they do run a credit check again right before you close. If you take out too much debt, you may lose the loan at the last minute. And that is quite disappointing and frustrating.

3- Remember that the loan process is a process. It does take awhile and it is difficult to wait, but any good lender should give you an update often.

4- When your loan officer needs something, get it quickly. The contract to purchase your new home has a lot of deadlines. If you don’t get the required info to your lender, it may be difficult to meet those deadlines, which could result in a loss of earnest money or even breaking the contract and not getting the home. (This is a big reason why having a good Realtor and good loan officer is IMPORTANT!)

And don’t forget, I also blog about other ways to help your credit and finances.

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