This weekend we're hosting our annual HOMES FOR DOGS national pet adoption! If you've been considering getting a pet, before choosing a breeder or venturing into a pet store, stop here first. You
6 Ways Homebuyers Mess Up Getting A Mortgage
It might be your first time getting a mortgage or your third time, or maybe you're refinancing. Whatever the case may be, the process can be stressful and confusing. Most of us do this only a few times in our lives so we're no experts. Instead we have to rely on those that are and even they too agree that it can often be a struggle - ask any lender. A lot can go wrong when you're going through the mortgage process. That's why it's key to find a lender you trust and can rely on to help you through the process. If you're going to be getting a mortgage now or anytime in the future, it's best you know these six pitfalls beforehand.
2. Meeting with only one mortgage lender.
As I stated in the beginning, finding someone you trust is crucial. Don't just go with the first person you meet. Even if you do feel good about them or they came highly recommended, it's always best to meet with several lenders before choosing. This holds them true to their numbers and gives you an idea of what other programs may be available.
3. Moving money around.
To get pre-approved you have to show enough money in reserves to cover the down payment. Although you do show this up front when getting pre-approved, you still have to go through underwriting and the underwriter will check that those reserves have remained the same. Suddenly moving money around, whether that be taking large sums out or putting large sums in, is a huge red flag to the underwriter.
4. Applying for new lines of credit.
Don't apply for a new credit card or line of credit while buying a house. Each hard credit inquiry docs your score five points. Worse than that, a lender doesn't want to see that you're borrowing money for different things all at once. This tells them that you're desperate for money and that you may not actually be able to afford the home.
5. Changing jobs.
Lenders want to see that you've had at least two years of consistent income. Changing jobs while you're in escrow is another big red flag to the underwriter. Granted, we can't always control such changes, so, if you're forced to change jobs, contact your loan officer immediately. It may be that all you need is a written letter of employment from your new employer.
An Orange County native and Team Manager of The Kurt Real Estate Group with a heavy background in both Marketing and Transaction Coordinating, Liz has handled it all - from listings to buyers, from t....