Mortgage Myth Busters: Been approved for a mortgage in New Jersey? What not to do... DON'T......

Been approved for a mortgage in New Jersey? What not to do... DON'T......

keys to home ownership

 

There comes some responsibility and understanding of the mortgage process when buying a new home. Some think that just because you are approved for a mortgage in New Jersey, you can sit back and wait for the closing to happen now. There are many things a buyer must be careful of, even after they have been approved for a mortgage.  This isn’t always explained by the loan officer, hence why I wanted to give a list of items.

 

What not to do after being approved for a mortgage, when you have received your commitment letter. DON’T …..

 

  • DON’T change jobs or quit your job. If you change your job in the middle of the process, this could delay your closing.
  • DON’T keep shopping for a new mortgage. This could effect your credit scores and either cost you more money or deny you for a loan.
  • DON’T apply for new credit after you have applied for a mortgage. Wait until after you have moved in.
  • DON’T pay off any collection accounts and or judgments unless told so by the lender. You need to be careful of such advice once in processing, because it could change your credit score for the worse. Understand your credit and what should be done.
  • DON’T co-sign on any loan for anyone until you have closed on your loan.
  • DON’T start with a credit counseling agency when starting the mortgage process. If your credit has to be pulled again and this is found out, some mortgage programs don’t allow it in a certain time period.
  • DON’T spend your money or make any changes from your savings/checking accounts or 401-k plans.  No large deposits or they will have to be explained. If taking money from your 401-k plan for the purchase of your house and depositing it into your checking account, make sure you save the paper trail for the lender, showing what you did.
  • DON’T disconnect or change your home or cell phone number until you have closed on your loan. Lenders need to verify your home number, even if you use your cell number instead.

 

Summary : Some of the things mentioned above should not be done when even shopping for a mortgage or while even in the mortgage process. Most of all, none of the things mentioned above should be done once you have been officially approved for a mortgage in New Jersey with a commitment letter.

 

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Comment balloon 31 commentsJeff Belonger • April 23 2011 09:31AM

Comments

I have to laugh....my broker just sold a property where the "unrepresented" buyer changed jobs two weeks before closing, and the lender didn't know it. 

Don is so skillful, and the deal stayed in place and closed.  Wow!

Posted by Suzanne McLaughlin, Sabinske & Associates, Realtor (Sabinske & Associates, Inc. (Albertville, St. Michael)) almost 10 years ago

Jeff,

Great advice; buyers shouldn't make any "sudden moves" until after close of escrow.

Happy Easter,

Steve

Posted by Steve, Joel & Steve A. Chain (Chain Real Estate Investments & Mortgage, Steve & Joel Chain) almost 10 years ago

Thank you for the great advice. I will share it with others.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 10 years ago

People forget, no matter how many times you tell them, that employment will be verified AGAIN when it is time to fund.  The Loan Quality Initiative also requires lenders to monitor a buyer's credit throughout the process and if they buy a new car, open a new account, etc., WE WILL FIND OUT.

Great post Jeff, Happy Easter to you and your family.

Posted by Kevin Kueneke, San Diego Mortgage Banker (Caliber Home Loans) almost 10 years ago

 

SUZANNE... . this would sound so simple and like common sense... but how I look at it, if we don't explain this to our buyers, how do they truly know. I am thinking about doing this post in a quick brochure, to hand out to everyone... glad your loan closed...

STEVE... . you would think that would be common sense.. but as I explained to Suzanne above, how does one truly know, unless we educate them. And thanks, you and your family have a great Easter also.

GITA... . my pleasure and do share it. As I mentioned, I am going to do a simple brochure of this post. thanks

KEVIN... . yea, and we have that problem, that people forget or just listen. But how many are truly told all of this when doing the mortgage application? I bet less than 25%.... thanks for the compliment and happy Easter to you and your family also... thanks

 

Posted by Jeff Belonger, The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans ( Social Media - Infinity Home Mortgage Company, Inc) almost 10 years ago

Jeff, I never thought about the phone number but it makes sense - all great points on what not to do for home buyers

Posted by Diane McDermott, Charlotte NC Real Estate Market (RealtorĀ®, GRI, Landis e2 Real Estate, LLC) almost 10 years ago

Worse yet: a buyer of a home I had listed decided 1 week before settlement that she 'hated her boss' and quit. Obviously that didn't work out so well for her home purchase.

Posted by Ken and Leslye Huebsch, Realtors - Harrisburg Homes for Sale 717.514.1793 (3x Individual Agent of the Year, Luxury Homes, First-Time Buyers, Residential Resales, New Construction) almost 10 years ago

I have a similar list of "Do's and Don'ts" from my mortgage reps in my office.  I am going to make it part of my website mortgage section for sure.   It is great advice, especially fopr many first time home buyers who do not realize the effect their actions or inaction can have on their credit and ability to obtain a mortgage.

Posted by Bob Zorechak - ABR, GRI, e-PRO, Sells Homes in Morris/Somerset/Hunterdon Cos., NJ (Keller Williams Realty Metropolitan) almost 10 years ago

Many of the DONTs seem like such common sense items to me, but you can never underestimate what somebody might neglect to think about when they are trying to get a loan. 

Posted by Eileen Hsu, LICENSED REAL ESTATE SALESPERSON (Douglas Elliman Real Estate) almost 10 years ago

Jeff

This is such important information for buyers during the laon process, and coming from an experienced mortgage professional makes it even more credible. I know people that have made job changes, gone on expensive spending sprees and trips, and worse. I also know of a deal that fell apart becuase the lender chekced the credit the day before closing and found a problem - end of deal.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (eXp Realty of California, Inc.) almost 10 years ago

It can't be expressed enought the do's and don't for obtaining a loan to purchase property. Bottom line is listen to the professionals who are trying to help them achieve that.

Posted by Celeste "SALLY" Cheeseman, (RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE (Liberty Homes) almost 10 years ago

Jeff - A great check-list indeed !  This list should be handed to every buyer after they go under contract.  ~ Chris

Posted by The Somers Team, Delivering Real Estate Happiness (The Somers Team at KW Philadelphia) almost 10 years ago

I have this typed up and named "BUYER THY SHALT NOT" and make them sign it the minute a contract is accepted.  Don't want it said they didn't know.

Posted by Sherry Scales, Realtor, for Austin, TX and surrounding areas (Austin Texas Homes, LLC) almost 10 years ago

Just posted this via Twitter and Facebook as well.  Sharing the love kinda thing : )  ~ Chris

Posted by The Somers Team, Delivering Real Estate Happiness (The Somers Team at KW Philadelphia) almost 10 years ago

I alwasys worry about these sort of things happening. They rarely do but we need to put the reminders out there.

Posted by Chuck Carstensen, Minnesota Real Estate Expert (RE/MAX Results) almost 10 years ago


DIANE....
. since the phone number is so critical in regards to the application and the mortgage process, people need to be aware of this.. thanks

KEN... . ouch.. and in all honesty, can we blame the buyer for not thinking of this, even though it might be common sense. Hence why we must educate the buyers on the whole process.. thanks

BOB.... . I am going to make it an e-book on my site and make a brochure to hand out to all borrrowers and to realtors for their clients... and I would love to see your list.,.. maybe I am missing something... jbelonger@ihmci.com thanks

EILEEN... . as I mentioned to Ken and a few others.... certainly common sense, but common enough? thanks

JEFF.... .  I am not sure why I haven't written about this earlier... but you do hear more of these stories more now than before.. thanks

SALLY... . I totall agree that it can't be talked about as much as it should.. hence why I finally wrote about it.. thanks

CHRIS... .  thanks for the compliment... and I will be working on an actual brochure of this come Sunday night and Monday... I'll share it with you and Stephanie.  thanks

SHERRY.... .  that's being very pro-active... would love to see your version... thanks

CHRIS.... watch where you share that love.. lol  Seriously... if you ever share any of my posts, would love if you go to here... The FHA Expert ..  this is where I share these kinds of posts first... thanks  ps.. thanks for sharing this...

 

Posted by Jeff Belonger, The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans ( Social Media - Infinity Home Mortgage Company, Inc) almost 10 years ago

I had a loan fall apart once over the buyers buying furniture! I even told them not to make any credit purchases.....guess they found out the hard way. 

Posted by Rosalie Evans, The Evans Group, Sioux Falls, SD Homes For Sale (Meritus Group Real Estate) almost 10 years ago
This is a great reminder for borrowers in any state, thanks for sharing
Posted by Brian Doubleday, Ladera Ranch, Foothill Ranch, Lake Forest, Mission Viejo (Brian Doubleday - IML RealEstate - Orange County, CA Broker) almost 10 years ago

Great tips and reminders...they do seem so simple and common sense yet i know that this stuff happens all the time!  

Posted by Deborah Byron Leffler BzyBee Real Estate Lady! (Keller Williams Realty Boise) almost 10 years ago

This is one of the most important list of tips once can share with a buyer.  I also tell them not to go on a spending spree or buy a new expensive car or truck!

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) almost 10 years ago

Jeff,

Just stopping by to wish you a Happy Easter

Posted by C. Lloyd McKenzie, Living Albuquerque almost 10 years ago

Jeff, about 10% of the time i find buyers do one of the above & gaff up the whole buying process...this is great info to share...Happy Easter!

Posted by Ginny Gorman, Homes for Sale in Southern RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) almost 10 years ago

Super tips Jeff, I will re-blog this tomorrow.  So, important.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) almost 10 years ago

 

CHUCK... . yes, they rarely do happen, but when they do, all hell can break loose.. thanks

ROSALIE.... . some people will never listen and have to learn the hard way.

BRIAN.. . yes, for any state... thanks

DEBORAH... . more common sense to those of us in the business... hence why we should put out more reminders.. thanks

JOAN... . you would think this would be part of the agreement of sale or any mortgage application. I am going to make a brochure for my buyers and realtors... and an e-book.. thanks

C LOYD.... . thanks and a Happy Easter to you also.

GINNY... .  about 10%?  That could be a lot for some realtors... I guess if it kills or delays a closing. and Happy Easter to you and your family. thanks

GABE.... . thanks for reblogging this and for the polite compliment.

 

Posted by Jeff Belonger, The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans ( Social Media - Infinity Home Mortgage Company, Inc) almost 10 years ago

This is why you need a Real Estate agent....We know things that people need to know..good post

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) almost 10 years ago

Why doesn't this warning get to buyers from their agents or loan officers????  Somebody????

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) almost 10 years ago

Good advice.  Realtors as well as home buyers need to know this.  Coming for the both adds credibility to us all.

 

 

Posted by Ira Bodenstein, NMLS#: 445143 (PNC Mortgage) almost 10 years ago

I emailed you my version. I think something like this should be included in every contract for purchasing a home.  Maybe I should fancy mine up a bit.....but they get the point.

Posted by Sherry Scales, Realtor, for Austin, TX and surrounding areas (Austin Texas Homes, LLC) over 9 years ago

"Why doesn't this warning get to buyers from their agents or loan officers????  Somebody????"

It just did, once again.

 

Posted by Jason Sardi, Your Agent for Life (Auto & Home & Life Insurance throughout North Carolina) over 9 years ago

These are great tips for any buyer....so often any one of these can ruin a sale.

Posted by Larry Atkins (State Wide Realty Co.) over 9 years ago

Jeff - I want to give this list to eveyone I've ever known! Such valuable information in a nice, neat list! I'm so glad I checked out your blog - I'm loving it! ~ Kristine

Posted by Kristine Ginsberg, NJ Home Stager (Elite Staging and Redesign, LLC) over 9 years ago

Participate