The Real Estate Browser Volume 9, Issue 9 | Page 14

14 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 9 Number 9
www.LynchburgRealEstateBrowser.com
What NOT To Do When Buying a Home
By Sherry Brady, Branch Manager, Summit Mortgage Corporation
When you’re in the process of buy-
ing 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 pos-
sibly 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 det-
rimental 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.
initial interview process, the lender will then monitor
your credit activities until your new loan is closed.
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. 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 per-
form.
Obtaining a mortgage loan these days can be a
bit tricky, but at Summit Mortgage Corporation,
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
When you first apply for a mortgage loan, your
lender will pull your credit report, examine your
financial statements, and conduct a personal inter-
and experienced team members to start your Summit
Experience today!
Sherry Brady, NMLS #217258; Summit Mortgage
view to be sure they have a complete understanding Corporation NMLS #1041; www.LynchburgLender.
of all your income, assets, and liabilities. com. nmlsconsumeraccess.org, Equal Housing
After this
Opportunity.