New England Lending
Advice and knowledge for every homeowner
I worked with a couple a number of years ago to buy their first home. They were fairly new college graduates with fantastic jobs that paid quite large salaries. They were pre-qualified to buy for about $450,000. They found their perfect home, went under agreement and were coming in the following day to sign disclosures.
They came in after hours so there were hardly any cars in our lot and I was waiting for them at the front door. A brand new Lexus pulled into the lot (still had the new car plates) and they exited the vehicle. My mind immediately started to whirl with thoughts of debt ratios, funds to close and credit scores.
They walked into the office and rather than greeting them with “hello” I said “I really hope that’s your parent’s car”. They were so excited and said “No, we just got it. Isn’t it great? We love it!” I was groaning inside.
There are a multitude of things that will send your lender into a tailspin. Below is a list of as many as I could think of, because believe me, almost every day brings a new one.
- Don’t buy ANYTHING after you’ve been pre-qualified without consulting with your lender first
- Avoid having your credit pulled and if you’re not sure if someone is going to pull it, ASK (because we will)
- Let your Lender know if you will receive gift money- we don’t like large deposits and you have to be prepared to document and explain them
- When you’re asked to provide a bank statement to include all pages as numbered please do so, we really weren’t joking (even the reconciliation page)
- If there’s something wrong with the property, let us know (we’re going to find out eventually)
- If you’re doing a pre-qualification over the phone and you’re self-employed your income is your NET on your taxes, not your gross receipts
- If you’re going to be away on vacation let us know, this could affect the flow of documentation and the timing of your closing
- If you want your significant other to have access to information about the application that only you are on, please give us written authorization (we’re bound by privacy laws which protect you)
- Don’t leave me for 1/8% in rate (my service is worth it)
- If you tell me you understand something I’m taking you at your word- I don’t know what you don’t know unless you tell me
So what happened with my Lexus couple? They closed on their dream home, albeit 2 months later as they had to save extra money for the down payment to compensate for the car payment, it was a good think they had great salaries!
For more information from Carrie DiGeorge, please click on the link below her picture. Carrie is a wealth of knowledge.