Tag Archives: Mistakes

Tara Mortgage Services featured blog: Stop! Don’t Delay Closing Your Loan With These Mistakes

DHREA 05/07/2019
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(Each week we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

You found the dream house, got approved for a mortgage at a payment you can afford and are now just waiting to close. Time to take it easy –maybe start shopping for new appliances or even look into taking that new job that’s closer to your new home.

Stop!

Making certain decisions before your loan has closed could jeopardize it. Why? Mortgages are approved based on current financial situations and making changes that affect your finances could cause problems.

Here are the top financial and life changes you want to avoid while waiting for your mortgage to close:

1. Opening new credit

Does your new home need a refrigerator? Perhaps a washer and dryer? If you’re a first-time homebuyer, chances are there are many big purchases that you need to make your house a home. But avoid the temptation to finance your new purchases!

Opening a line of credit, no matter how small, could put a halt to your mortgage approval. New credit affects your debt-to-income ratio and could make your credit score drop, sending red flags to the underwriter. Even if the closing isn’t delayed, your new credit score could redefine your terms.

2. Moving money around

You need to provide proof of assets such as your down payment plus money for closing costs, and maybe even additional cash in the bank. But you also want to show proof that these assets are stable.

For example, transferring money from a business account to a personal account to pay the closing costs could make it appear as if your business or finances are unstable. Don’t give underwriters a reason to doubt your stability and leave your money where it was when you were first approved for a mortgage

3. Closing credit

Getting your finances in order is a great idea, but don’t close any unused credit cards in the process. Just like opening up new credit, closing lines of credit also affects your score, potentially jeopardizing your loan.

4. New charges on credit cards

You guessed it! Using your already open credit could also be a red flag. Making small purchases should be okay, but large purchases and maxing out credit cards are a terrible idea. Remember, any changes to your credit affect your debt-to-income ratio and your credit score, and could delay closing for weeks, months, or even prevent it from closing at all!

5. Changing jobs

Lastly, don’t switch your employment while waiting for the loan to close. Your mortgage is largely based on your current employment situation –meaning both your income and years of employment. While moving into a higher paying job is certainly a good idea, wait until after you’ve moved to make any significant changes.

Remember, you want to show proof of soundness, including employment stability.

Delaying your closing isn’t just about waiting longer to move into your home, it could mean incurring additional costs, or losing the original deal completely. It’s just not worth it.

Still shopping for the right loan at a great rate? Contact Tara Mortgage Services and get the answers you’re looking for!

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MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

Red Tree Mortgage: https://www.redtreemtg.com/

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Avoid These Mistakes That Delay Closing Your Home Loan

DHREA 30/10/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

 

Our goal is to get your home loan to close as quickly as possible –we know that when it comes to making an offer on your dream home, time is crucial. Did you know that you also play an essential role in making your loan close fast?

Here are the most common causes that delay home loan approval and closing:

#1: Missing Financial Details

We don’t need to know your entire financial history, but we will need to see every detail from the past two years. Don’t worry; we’ll let you know precisely what you need to provide, making sure that everything moves as quickly as possible.

#2: Leaving Out Documentation

The documentation needed for your loan may vary (and we’ll let you know what your loan calls for) but keep in mind that we’ll need the following:

  • Tax returns and W-2s from the past two years (or year-to-date financial statements for the self-employed)
  • Last month’s pay stubs
  • Two months of bank account statements
  • Copy of any transactions that exceed $1,000 Home insurance quote
  • Financial details of any other homes, businesses, or vehicles that you own
  • If anything significant pops up when we check your credit, we’ll need documentation for this as well.

#3: Mistaking Pre-Qualified For Approval

Pre-qualified requires minimal information from you. It’s a great way to get an idea of how much you can afford to buy, but it doesn’t mean that your loan is approved. Applying for a loan, getting approved for the loan, getting the underwriting approved are the additional steps that need to happen before your loan is approved and can take the step toward closing. Don’t let this discourage you! We take care of all the heavy lifting and make sure that it moves along quickly. All we need from you is to get the ball rolling by applying for a mortgage.

#4: Not Sharing Details Of The Offer With Us

When you buy a home, the purchase contract will layout certain financial milestones that we need to know about, such as by when your loan approval should be secured and how many days you have to close. If we miss any of these dates, not only will it delay your loan but it could cause you to lose the home!

#5 Making Big Changes to Your Finances or Career

Changing jobs, opening a new line of credit, making big purchases, or loaning your friend 3k to start up their business changes your financial portfolio. This means that adjustments must be made and you may not qualify for as much as you originally were quoted. The application process, essentially, needs to start over –delaying your home loan and delaying closing even more.

There are many more factors that could delay your home loan, things that are out of your control. Rest assured that we will be with you, ready for any surprises, minimizing any unnecessary delays.

Contact Tara Mortgage Services today to partner with a home loan specialist that has your best interest in mind!

 

 

ALEX DEACON’s NOVEMBER REAL ESTATE WORKSHOP HAS BEEN ANNOUNCED! CLICK BELOW FOR DETAILS, TO RSVP, AND TO CONNECT WITH NEARLY 600 REAL ESTATE PROFESSIONALS!

Virtual Bus Tour of Current and past rehabs

Saturday, Nov 10, 2018, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

20 Members Attending

We have done a few actual bus tours in the past but with the strong turnout I dont like to have to turn down folks due to the high volume of requests. Our next workshop in November we will do a virtual tour of some current and past projects and show you where to spend your money wisely and where you can and cant cut corners in order to stay profita…

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Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

 

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