Don’t be lying to us! Tell your loan officer everything…I mean everything!
There’s no denying that when you are getting a mortgage, your loan officer is exposed to many intimate details of your life that most others don’t get to see. We get it and we take that responsibility very seriously.
Our careers cause us to become part counselor, part financial advisor, part friend and definitely part wizard. I say the “wizard” bit because most people have no idea the behind the scenes finagling that comes with being a loan officer. It is magic.
With that said, there are certain things that we REALLY need to know if you want to make sure your loan stays on track and doesn’t get declined at the last minute.
To follow, are what I see the most, whether they be straight out lies or convenient “omissions” of information, here are 5 things that will mess up your loan:
1) We really need to know if you are married. Please don’t say you are single when you are not. Texas is a community property state and when it comes to owner occupied real estate, the spouse, even if not on the loan, has to sign some papers at closing.
Even if you have been separated for 20 years or haven’t seen your spouse in 5 years, you are still technically married. Once we know this information, we can properly advise you as to what has to happen AHEAD of time instead of at the closing table when your loan can’t fund because you have a spouse we didn’t know about.
2) If you are going to be changing jobs before, during or very soon after the loan closes, we need to know this. Why? So we can advise you as to what to do. Sometimes, a job move will mess up your qualification on your loan. If you plan on going from a W2 employee to a 1099 employee, this will cause issues. If you are changing fields, or work hours, or going on leave, or whatever…we absolutely need to know ahead of time so we know how to handle it and how to advise you properly.
And, for the love of everything that is good, please don’t quit your job right before closing. We have to do an employment check right before closing and if you quit, or give your 2 weeks or are retiring etc. we are going to find out about it and that will delay your loan closing or completely stop it from happening.
3) If you recently financed a big item that you know isn’t showing up on credit, we need to know. I am talking about everything from a new car, boat, credit card to even an IRS installment payment. These things don’t show up at first in a lot of cases…until it is too late! Unknown debt is probably the #1 deal killer after a contract has been written. Remember, we are qualifying you based on what you said and what is on the credit report…so if you have something you pay or will begin to pay, we need to know.
To further add onto this, whatever you do, do NOT open up any new debt after your loan process has begun. Not only does this complicate and delay your transaction, but it can also potentially get your loan declined. So don’t do that.
4) If you have spent the money that was in your account in the beginning of the loan process, we need to know. Why? Because most likely, we will have to get updated bank statements from you and if the money is gone, it may cause issues with your loan.
If you get a monetary gift, we need to know because there are paper trail and eligibility rules that come with them.
If you liquidate something, we need to know.
If you move money around, we need to know.
If you sell something to get money for your loan, we absolutely need to know.
While a giant pain in the butt, there are rules for everything that I said above here. We have to follow them, so please tell us what your plans are so that we can counsel you on your options.
5) Do not, I repeat DO NOT, co-sign for anyone on a loan while in the middle of the loan process. Even though you are a co-signer, if it is a brand new debt and the other person has not paid it for 12 consecutive months then, guess what? We have to count that debt against you.
And yes, you guessed it, it not only creates a fire drill for your loan team, but your loan also might be in jeopardy.
So there you have it! Those are my Top 5 that I see. Remember: Tell your loan officer everything and your home loan process will be much smoother.
Thank you so much for reading today. I hope that I made you smile and think a little bit. To reach me, visit SALending.com
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