Stop! Don't Make A Move

April 7, 2015
Stop don't make a wrong move

Please stop what you are doing now. Lately, I have had several first time home buyers make changes in their financial situation after they submitted their initial loan application which has caused issues on getting approvals on their loans. Here are some NO-NOs to live by when applying for the first time home buyer program: (1) Don’t start making large deposits into your bank account. (2) Change or quit job. (3) Buy a car or any other big ticket item such as furniture. (4) Start charging items to credit cards. These are just some things which are driving me crazy when I am trying to get loan approval through underwriting.

Most people think we are not going to check your bank account, credit report, or employment information once you have submitted your loan application which is not true. We may ask for another bank statement and we need to verify any large deposits other than payroll. For example, I had somebody sell a coin collection for $5,000 CASH without any proof they sold it and they dumped the cash into the bank account and we can’t prove where this money came from which is a huge problem for the underwriter.

I had another situation where the borrower got a new job with lower salary plus commission but we can’t use commissions unless there is a 2 year history. The next disaster waiting to happen is buying big ticket items or running your credit cards up which affects your credit score. Can you please wait to buy a car before you buy a home which is the roof over your head? Also, if you start using your credit cards you risk your credit scores going down and disqualifying you from the program. Many borrowers don’t know that lenders do random credit checks prior to closing and if your credit score drops below the required minimum score then your loan will be denied and you won’t close on your new home. Another thing to consider is the fact that your credit report is only good for 90 days and once it expires then it needs to be pulled again.

The final item I want to talk about is the verbal verification of employment. Once your loan has been approved and all conditions have been satisfied then the processor will contact your current employer to verify that you are still employed there. I have had people leave their jobs and not tell me they have switched jobs. I hate to say it but Big Brother is watching and lenders are going to monitor everything on your loan file until you close so my advice is please don’t do anything with your credit, job, or bank account unless you speak to a loan professional first.

Don’t make a wrong move which may ruin your chances of owning a home. Call us today at 847-516-5743 to get preapproved or fill out fast track pre-approval form and one our loan representatives will contact you right away to guide you on the path to homeownership.