Home BuyingUncategorized January 18, 2021

22 Money Murdering Moves According to your Mortgage Broker

 

  1. Changing jobs, A lot. Mortgage Companies want to see a stable income and that’s consistent. Being in the same career field helps but really staying at the same firm/company is even better. Do you have 401K, IRA, or any Savings? Mortgage companies like these.
  2. Le Credit est Merde. Yeah, this seems like an obvious one, but you would be surprised how many people come my way with hedge fund jobs and have terrible credit and can’t get preapproved.
  3. Buying a big purchase right before trying to get financing for a home. You just got a large chunk of change from your Grandma and you want to wild out. Don’t go buying that New Escalade and then try and come to all Baller into the Mortgage Brokers office to get a pre-approval. It’s not going to happen.
  4. Just one late payment. So annoying, I know… I myself have been guilty of this. I make sure right away that all my credit cards are on autopay. Credit Card companies don’t mess around. You can be like 1 day late and your credit score goes down 36 points.
  5. Not paying ALL of your bills on time. Another obvious one, but medical bills these days will get you in the clencher too. Just make sure you’re making every payment even a couple of days before it’s due.
  6. Applying for more credit. I feel like credit card companies are just wanting you to lose your mind. I was getting 5 Discovery credit card preapproval letters in the mail each week. Like first of all what a waste of paper and second of all NO just NO. Just say no to the new ALL BLACK PLATINUM TITANIUM RICH PERSON credit card. It will mess with your credit. Leave us alone.
  7. Canceling your zero-balance credit cards. Now, this is the real mind F. It’s like they want you to be in debt but just a little in debt, if you’re not in debt you will be penalized for canceling a zero-balance card?! That just doesn’t seem fair. That zero-balance card just taking up room in your wallet taunting you.
  8. Transferring balances to a single card. Now it sounds like a great idea. I’ll just get all my debt into one site and pay it off. But oh no, now my credit score went down again. Sadz.
  9. Co-signing credit applications. Your little brother needs a credit card for college and you’re the only one in the family with a steady job. JUST DON’T DO IT. Give him an allowance if you want to help him. Let him screw up his own credit.
  10. Not having enough credit diversity. What other assets can you show? Mainly they want to see an Auto loan. Preferably one that has been paid off and one that is an open and healthy history of paying on time.
  11. Carrying too much debt – While it’s in your best interest to have a responsible credit profile, if you start spending money on all the Chanel Cosmetics and trips to Tulum then get in over your head, you could hurt your chances of mortgage approval. Maxing out credit cards can raise your credit utilization ratio and lower your credit score. Credit utilization is the percentage of your credit card debt compared to your credit limit.
  12. Not Saving enough Cash – Down payment on a loan typically 20% of the overall cost of the loan. When in doubt save and save and save. Perhaps stay in a one-bedroom apartment when you want a two-bedroom, Maria Kondo the place and get your financial house in order.
  13. Self Employed. Now this one really sucks because what about all those creative people who are freelancers out there?! Shouldn’t they be allowed to buy homes too?! Yes, but ALL CASH is what they have to do. I guess it is what it is.
  14. Marrying someone with bad credit. She is the hottest Instagram Model; she turns everyone’s head. However, she has yet to return her ex-boyfriend’s Bently and her Visa has run out. “Marry Me,” she says! She is your dream girl. JUST DONT DO IT.
  15. Rental History. Have you been living with your mother for 10 years saving money to buy your own place? Now is the time. But you’re at the mortgage broker and you have no rental history. Hopefully, at least you have an Auto Loan.
  16. Not getting Pre-approved. WHY WHY WHY WHY would you waste everyone’s time if you’re not even approved for a mortgage and you are shopping for homes? That’s basically just voyeurism, you weirdo. Time is the most expensive thing we have and to waste anyone’s time is rude. If you can’t pre-qualify for a mortgage then you have no business looking at homes unless you are paying cash.
  17. Ignoring fees – Experts say fees can equal 3 to 5 percent of your total loan amount — a big number. Take that into account before making an offer on a home.
  18. Not locking in your rate – Mortgage rates change often. The rate you’re quoted when you’re shopping often can change — for better or worse — before the loan closes. Lock it in, lock it up.
  19. Using up most of your available credit. That’s like showing your mortgage broker you don’t like money; in fact, you like to be in debt almost over your head.
  20. Co-signing someone else’s loan – Here’s your pesky little brother again. You love him to death but now he wants a car, he’s tired of taking the train home on the weekends. Couldn’t you just co-sign for him? NO.
  21. Confusing loan approval amount with what you can afford. Mortgage rates are at an awesome all-time low. Don’t go spending what isn’t plausible just because you can get approved for it. Remember that little housing bubble problem we had in 2007/8? Oh yeah, that almost tanked our economy. Let’s avoid that again.
  22. Assuming you got it in the bag, as a second home buyer. You got three homes under your belt. You are a big-time house flipper and want this vacation home as the spoils. Somehow the bank doesn’t care, you have been bad about paying your credit card bills late.

brandiebowman.victorian.