You’re driving through the neighborhood you can really see yourself living a happy, comfortable life, and you spot what could very well be your dream home. The home is in your price range, and you’ve spent the last few years building your credit and saving for a down payment. Suddenly you have your moment and think, “this is it.” You’re now emotionally, physically, and financially ready to purchase a home–or so you thought. Obtaining a mortgage isn’t as easy as some home buyers might think. All qualifications must be met and every aspect from the preapproval to the appraisal must align in order to close, and some buyers find that they do not qualify due to an issue (big or small) that’s outside of their hands.
That’s where Platinum Home Mortgage comes in! Our expert mortgage consultants, such as myself, are with you every step of the way and can help you avoid the common problems while obtaining your mortgage. If you have a problem, we have a solution!
Be prepared and read the 10 Common Problems (and Solutions) While Obtaining a Mortgage below
Can you just imagine walking through a loan process with the understanding you qualify, then don’t? It happens more often than talked about. It’s vital to be preapproved by a qualified mortgage professional as early in the game as possible! Do not make the mistake of waiting for your escrow period. A preapproval can help you better understand how much house you can afford and can be used as proof to the seller you can afford the property.
One of the greatest complaints from buyers is the lack of communication on where they stand in the mortgage process. Whether it is the loan officer, real estate agent, or any players in the game, communication is vital for a successful transaction for all involved.
I like to call this the “freak out period.” Some first time and move up buyers will lose their mind a few days after signing a contract by oozing in fear. Skill relieves fear! Surround yourself with a mortgage consultant to help you walk through and explain the parts of the process that may make you feel uneasy.
Now what? There are some great choices for a borrower at this point:
- lower the price to appraised value
- negotiate a new price
- walk away from the transaction
Make sure you understand the choices you can proceed with and why!
Just like a book, you can’t judge a house by its cover. As a borrower, you get a FULL x-ray of the property through an inspection and appraisal. In many cases, the property looks in pristine condition inside 4 walls, but the foundation, plumbing, electrical work is hiding underneath those freshly painted and primed walls. If there are no broken bones, then no need for fixing. Yet, if there are bones broken, it may be time to move on or talk about a seller’s credit if the repairs are minor and fixable without extensive work.
Let me warn you. Between the loan application and closing disclosures, there could be up to 50 pages to review and sign! Not including Real Contract adding another 25, escrow another 20, and appraisal another 20 pages… Thankfully, much can be electronically signed through Platinum Home Mortgage’s secure online database. You can start your application and sign majority of your documents on the go! My best advice is to always get formally approved for your mortgage beforehand and understand the process to eliminate any confusion and much of the headache in advance.
Credit is another big challenge in loans. Many borrowers tell me how well their online score is until a Real Estate Credit Report with all three bureaus is run. A lot of credit card companies provide your credit score online or through an app, but this is not a number you should rely on because it may not always factor in every component for every credit card or loan you’ve had. It is important to get one credit report run from all 3 bureaus, and do not run another–the number of inquiries matters!
Borrowers must have their money seasoned for two months without any major deposits other than payroll. Many buyers forget or don’t know this requirement, and they make large purchases such as furniture, or move money to and from accounts. Have your down payment ready ahead of time, and don’t make any purchases or add/remove sums of money until you officially close. Also, when receiving a gift from a family member to help with the down payment and closing costs, the donor must also have seasoned funds.
Everyone needs a home, but that does not mean everyone needs a mortgage. If you don’t know why you’re running a 10k, then you won’t do it. It’s the same with purchasing and applying for a home loan! It’s a big commitment, so there has to be a big enough WHY. The reason must be worth the investment.
50% of my friends are real estate agents, and there are a lot of them. You will want to find an agent who is willing to go the extra mile and cares about finding the perfect home for you. Choose your agent wisely and set expectations as to what you want and need throughout the process. Having a good real estate agent is just as important as having a good mortgage consultant for a smooth home buying experience.
Download the 10 Common Problems While Obtaining a Mortgage below
If you’ve had problems obtaining a mortgage in the past or just want to ensure a smooth process, contact me!
👨💼 Micheal Cordova, mortgage consultant
🏢 20501 Avalon Blvd.
Carson, CA 90746