#5 is consolidating bills while purchasing a home. Consolidating debt is a common practice, and helps with managing monthly bills. However, even if the monthly payment may be less than the borrower is currently paying, arranging a consolidation loan while in the mortgage underwriting period will affect the borrower’s credit rating, putting obstacles in the way of a smooth approval. #6 is moving assets between bank accounts. I advise borrowers I am working with not to move money around, because the underwriters are keeping watch and want to make sure that everything matches up with the requirements. If funds are moved around, the borrower will have to provide documentation showing where it went, and it makes things complicated and can cause delay. Likewise, any deposits made over the last two months must be sourced. So for instance, you can’t deposit $5,000 cash that was being kept in a safe at your home. No cash deposits or non-payroll deposits will be accepted. All deposits must be sourced. #7 is the sin of misplacing or losing track of financial documents during the process. Often, buyers are anxious to pack and begin storing items in preparation for the big move. In packing the house, they pack all financial documents inside of a box and then quickly lose track of it in the packing chaos. If I call the borrower a few days before closing and ask them for a document — and they can’t find it — that could seriously affect the outcome of the loan. I tell borrowers, “Before you start moving, pack your financial documents up separately, and make sure you have access to them all the way through the loan process. Don’t do anything with that paperwork until you’ve closed the deal, the loan is funded, and you are good to go with purchasing that house.”
I WILL BE THE LOAN OFFICER YOU NEED
87
Powered by FlippingBook