Richard's Real Estate Thoughts - Chattanooga TN Mortgage Lender: To Do or Not To Do: Tips to Help Closing Your Home Mortgage

To Do or Not To Do: Tips to Help Closing Your Home Mortgage

Here are some reminders for home buyers, about things to do and not to do which can impact your home mortgage closing. Buying a home is best when it is a planned life event. A couple months before beginning the home search and mortgage preapproval process, looking at your credit and assets is recommended.

Preparation for buying a home can be enhanced by meeting with a mortgage loan officer to discuss credit and funds and loan types. A credit review can be done without a hard hit. I recommend setting up a Credit Karma account and working on credit through that excellent service. While those credit scores may not match the mortgage credit scores, a clear picture can be seen through the Credit Karma report – if you look at the report and not just the scores.

Assets are as critical as credit, and are most often overlooked in planning for a home purchase. A typical home buyer should expect to spend out of pocket before closing about $1500. This is for the earnest money, the home inspection (optional, recommended), and the appraisal. Bank statements should be reviewed for unusual deposits. Sometimes borrowers have regular withdrawals that suggest possible obligations that are not reported on the credit reports.

Reviewing bank statements a couple months before beginning the home search can help with a smooth closing by identifying any items that might raise questions in your loan approval. Once a deposit or a withdrawal is made in your bank account, it cannot be undone.

During the process, home buyers should always be cautious about new credit inquiries, any reductions in verified bank balances, and of course any change in employment or income. During the approval process, up to closing, any possible changes should be discussed with your loan officer. Even that new living room set that is on sale the weekend before closing.

Lenders recheck credit inquires and verify employment before closing. Also, at closing borrowers must sign the application stating their debts, employment, and income; and attest that there have been no changes in their financial situation, such as new debt or a change in income.

Before beginning home search, review:

  • Income

  • Credit

  • Assets

During the process, avoid:

  • New debt and credit inquiries

  • New purchases

  • Changes to income and employment


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Richard Smith
NMLS# 184479 TN# 104002 Georgia Residential Mortgage Licensee, GA#28928 

Conventional, FHA, FHA 203k, HUD $100 down purchases, VA,

Rural Development (USDA), THDA and Jumbo Loans


Lending in Chattanooga, Tennessee and Georgia for over 20 years.

Fairway Independent Morgage Company

Cell phone: 423-280-0345 Email:  Richard.Smith@FairwayMC.com

Visit my website to inquiry about a home loan.

This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Fairway Independent Mortgage Corporation.

 
Comment balloon 1 commentRichard Smith • October 13 2016 09:57AM

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(423) 280-0345 speaking Richard Smith Mortgage and Lending with Sierra Pacific Mortgage Loan Officer FHA Rural Development in TN GA.

Posted by Will Nesbitt, Nesbitt Realty is a family-run brokerage. (Nesbitt Realty at Condo Alexandria) about 1 year ago

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