The Deadly “Don’ts” of Home Financing
by Jayson Stebbins
jstebbins@guildmortgage.net
H
ome buying is complicated enough as it is without hav- ing to remember the things
you are NOT supposed to do. However there are some “Deadly Don’ts” to remember when you are applying for a home loan that can save you a lot of time and trouble. I had a client who was pre-quali-
fied for a home loan and was out shopping with her realtor. She found a home and we updated her file to get her loan approved, when we dis- covered a new debt on her credit report. We found it was a new credit line for furniture and appliances she had bought in advance of the home
loan closing, and now she did not qualify for the home loan. What follows is a list of a few
things to avoid when you are seeking financing on a home, either refinance or purchase, so this doesn’t happen to you:
DON’T MISS ANY PAYMENTS – Be
vigilant during your home loan process to keep all bills on track and paid on time. Even a late payment on a small credit card could be signifi- cant.
DON’T MAKE ANY MAJOR PUR-
CHASES – Avoid car buying or leas- ing. You may have preliminary approval or have been pre-quali- fied, but new bills and debts can void those approvals. This rule applies to opening new credit accounts for furniture or appliances or charging large amounts to an existing card. Hold your credit profile as static as possible dur- ing the loan process.
DON’T MOVE
MONEY AROUND – Large deposits or transfers, or large deposits that cannot be
44 May 2012 • Out & About DON’T CHECK OR RUN YOUR
CREDIT – Sometimes activity and “inquiries” into your report result in questions from your lender. On a related note, avoid consolidating cards, closing accounts or other activity on your report. This can wait until after you have your new loan. The story above had a happy end-
ing, as we were able to find a way to get her qualified using a different program. I have had others that didn’t end as well. Pay attention to the “Deadly Don’ts” above and work with your mortgage loan officer if you have any questions. That will make for a much smoother closing on your home loan.
Jayson Stebbins is a nineteen- year
veteran of the mortgage banking industry and an accredited mortgage professional through the Mortgage Bankers Association. He grew up in Morgan Hill and currently lives in Gilroy. He is the local branch manager of Guild Mortgage, a fifty-two year old mortgage banking firm. His office is in Morgan Hill and serves all of Santa Clara, San Benito and Monterey counties. You can reach Jayson and his team at 408-782- 8800 or jstebbins@
guildmortgage.net
www.outandaboutmagazine.com
documented can create unnecessary stress on the loan. Sometimes you have to if you are liquidating an account or if you are getting a gift of funds. Work closely with your mort- gage loan officer to plan ahead and make sure all the moves can be justi- fied and documented.
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