How to Screw Up your home loan in 14 easy steps

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Thanks to Mike Meena at Augusta Financial for contributing to this #Slideshare built by #HaikuDeck - Much appreciated. The Top Santa Clarita Lender. Here is the direct dissertation: 1. Do not stop paying your current mortgage(s), rent, credit cards, car payments, personal or student loans, or any other recurring credit before your loan is closed. 2. Do not try to “time” payment of any obligation around a forecasted closing date for your loan. Call with any questions or concerns about this important issue. 3. Do not apply for more credit, or finance major purchases during the loan process—increasing your debt will alter your credit profile and qualifications! New or additional debt can cancel, suspend, or change your loan or terms. This also applies to “deferred payment” financing as well. 4. Do not close any credit card accounts prior to closing. Closing a revolving account will impact your credit scores. Pay balances down, but don’t close. 5. Do not make non-refundable deposits on other products or services until your loan is closed. 6. Do not co-sign on a loan for another person. 7. Do not quit your job, even if you have employment arranged at another firm. Please notify us of these changes to your employment or pay status immediately. This is very important. 8. Do not expect that the paperwork you provide at the start of your loan will be all that you may be asked for during the process. The typical home loan takes 3 – 5 weeks, and the lender may require updated pay stubs, bank account, or other information just prior to funding your loan. 9. Do not change banks--keep your current bank accounts where they are until after close of escrow. 10. Do not withdraw large sums of money from your accounts, unless doing so for a mortgage-related expense, such as an appraisal, deposit, down payment, etc. If you are utilizing assets or retirement for your down payment be sure to show the net value of these accounts after the withdrawal on your application. 11. Do not file for bankruptcy. 12. Do not change your marital status. 13. Do not enroll in Consumer Credit Counseling or “debt consolidation” programs until after your loan closes. 14. Do not submit fraudulent documentation for purposes of obtaining a loan. It is a Federal crime punishable by fine, imprisonment, or both (USC Sec. 1001).

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