The Real Estate Browser Volume 10, Issue 12 | Page 12
12 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 10 Number 12
www.LynchburgRealEstateBrowser.com
How To Stay Off The “Naughty” List!
By Sherry Brady, Branch Manager, Apex Home Loans, Inc.
Let’s talk about things you
should not do (and why),
when buying a home.
When you’re in the process
of buying a home, it’s quite
common to start having thoughts of things you want to
do once your new home is yours: upgrades you want to
make, or things you want to buy: new furniture possibly…
new appliances perhaps. Or, maybe you’re not sure what
you’ll need just yet, but you know you’re going to need
something, so you decide to go ahead and open a new
account at the local home store, so you’ll be ready when
the time comes. DON’T DO IT! Opening any new lines
of credit or making any major purchases while you’re in
the process of buying your new home could cause major
problems. It could possibly even cause you to no longer
qualify for the loan!
Why does this matter? Incurring any other debts during
your mortgage approval process can be detrimental
because your lender is required to ensure that you can
repay the loan they are about to give you. Mortgage
lenders have always done this in some fashion, but it
became more standardized in 2014 when the Consumer
Financial Protection Bureau established the “Ability-to-
Repay Rule”, requiring mortgage lenders to ensure that
you are not taking on too much of a financial burden with
your new loan. To accomplish this, the lender must be
sure they have a complete picture of all your outstanding
financial liabilities.
When you first apply for a mortgage loan, your lender
will pull your credit report, examine your financial
statements, and conduct a personal interview to be sure
they have a complete understanding of all your income,
assets, and liabilities. After this initial interview process,
the lender will then monitor your credit activities until
your new loan is closed.
Things you should not do
when buying a home...
Once you apply for a mortgage loan, it is critical that you
continue to pay everything on time, don’t close any of
your open accounts, don’t open any new accounts, and
don’t max out your existing lines of credit. Basically,
keep doing what you’ve been doing, unless your lender
specifically asks you to do something else. Also, don’t
change employment unless it’s unavoidable. If you must
change jobs in the middle of your loan process, be sure
to discuss it with your loan officer in advance to be sure
doing so won’t negatively impact your loan approval,
and so they have time to do complete the employment
verifications they are required to perform.
Obtaining a mortgage loan these days can be a bit tricky,
but at Apex Home Loans, we’re ready to guide you through
the process. Go online to www.LynchburgLender.com
or call us at 434-237-1027 to speak to one of our highly
qualified and experienced team members to start your
Apex Journey today!
Sherry Brady, NMLS 217258
Cell (434) 238-8984
[email protected]
In years past, many lenders would pull a new credit
report just before closing. Typically, that is no longer
done because it could negatively impact your credit
score. Instead, lenders today do continuous background
monitoring which has no impact on your score, and
your lender is notified sooner in the event of any new
applications for credit.
Apex Home Loans, NMLS #2884, nmlsconsumeraccess.org, Equal Housing Opportunity.
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