What Can MAYBE Go Wrong With Your Loan – and How to Avoid It

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A lot of loan applications fall apart for different reasons and we know that after going through the long and arduous process of finding the perfect home that last thing buyers want is to have to be told they can’t have the home. That’s why we talked with a few of our local lenders and got the low down on what exactly causes these breakdowns in the mortgage process for many people. You won’t believe how easy it is to avoid these things!

Keep in mind that your credit score that you bring to the table will be the most important aspect to getting and holding on to a solid mortgage. As long as you come with a FICO score of 620 or great you should be in great shape. But even if your score does not meet that minimum standard, know that you can fix it and oftentimes we help our clients get on the fast track to success so they can buy the home of their dreams.

If you have started the process however, here are some of the things that commonly go wrong causing many mortgage applications to fall apart.

Incomplete Applications
Loan officers do their best to get their clients to compile as much information as possible that will be needed to complete the process. But all too often their file is incomplete because the buyer failed to provide an important piece. The types of documentation needed that are essential for the process to continue include things like:

*Two years of tax returns
*Income statements and paystubs
*Bank statements
*Divorce decrees
*401k statement
*Driver license
*Social security card

Not Enough Information
A lot of times the loan processor requires additional information in order to make an informed decision. This could be anything from names that were changed as a result of marriage or otherwise plus also additional addresses that may appear on the credit report but have not been mentioned on the loan application.

Unknown Credit Concerns
Sometimes credit reports reveal concerns that were completely unbeknownst to the creditor. This could include things like an old bill that was paid off but still remains on the credit report.

Processor Needs More Explanation
At times the loan officer takes the information and accepts it but by the time it gets to the underwriter, it’s found it’s not enough information. Yet another delay in the process, when this additional explanation does not make it to underwriter’s desk in time it can cause a rift in the application process and even end up in a rejected loan.

Properly Sourced Funds

Many homebuyers do not realize that once they are in the market to buy a home they must be very careful with the funds they have in the bank. Lenders have to follow strict guidelines in terms of the source of funds used for the purchase of a home. Lottery winnings and unaccounted for cash cannot be used and the source of all monies must be clearly demonstrated if necessary.

Liabilities Need More Data Provided

When a property that you are buying has a need for repairs often the lender approves the loan assuming repairs will be done. One part of the process involves appraisal where they may or may not accept the condition of the property and therefore approve the loan until those concerns are addressed.

Some additional causes of loan applications to fall through are as follows:

• Seller forgets something
• Signatures missing in documentation
• Incomplete information on the deed
• Closing title staff runs out of time
• Resources of time are often stretched

We can fix the problems – but your credit score is going to be the number one thing for you make sure is in good shape.

Here is our special report for more information on Loan Application Problems and Solutions – it’s a MUST READ report!

Winterizing Tips to Save You Time and Money

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Our homes always need a bit of extra protection and thought before the cold winter months take hold. Have you made plans for the things that you need to do in your own home before it gets too cold this winter?

If you are planning to take any trips or be away from your home for a few days, it is even more important to be sure that you are taking those extra precautions to save yourself a lot of heartache in the event that something happens in your home.

First, make sure that you have closed the vents under your house. That is always a great thing to do to make sure that you are keeping things warmer in the winter. Of course, make sure to open them up again when the warmer months start to approach.

A lot of people are under the impression that they should turn their thermostat way down when they leave. However, turning it too low can actually be detrimental to your tile, grout and drywall. Instead, try to keep it around the 55 degree level to make sure those things stay safe.

Another thing you should do each winter is have your furnace serviced. Nothing is worse than getting into the cold winter months only to learn that your furnace is not working properly.

If you are planning to leave your home, even for just a few days, you need to shut off the water to the home. It is very easy to do using the main shutoff valve. Freezing pipes while you are gone out of town can mean big problems and expenses when you return.

Finally, make sure to shovel your deck. We saw so many more deck repairs needed this year because people did not shovel their decks last year. It gets very cold and icy, especially on higher decks, so make sure to do this or hire someone to do it for you. If you need a referral, we know lots of people who do this kind of work.

Have a great winter, and please call on us if you have any real estate related question!