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 [phone] [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. Usah.co/LREB2 Usah.co/LREB1