What NOT to do when obtaining a Home Loan

Attention Home Buyers who are planning to buy a home using financing, who are in the process of buying a home or are already in escrow…this message is for YOU!

As a transaction coordinator, I see many escrows fall out.  Though it is quite a bummer when that happens, it is the nature of the real estate business so I have gotten used to it.  What is REALLY a bummer is when the unassuming buyer hears the news that their loan has fallen through…thus escrow and their successful dream home purchase goes out the window.  Not good!!

The process of buying a home can be stressful enough…in order to keep you from making a HUGE mistake that could keep your loan from going through, please review the below list of activities to NOT engage in while your loan in being approved.  Following this list is crucial to completing a successful loan funding and smooth purchase of your new home.  

You will want to wait until escrow closes before doing any of the things listed below.

Do NOT make any big purchases.  Don’t go buy or lease a new car while your loan is in the approval stage.  This could cause your lender to see a big red flag on your credit, thus not approving your loan.

Do NOT make any big lifestyle changes.  For example: Don’t quit your job or adopt a child…these things might make a lender think that you may not be financially responsible for your loan and pull the approval.

Do NOT forget to turn in important paperwork.  Your lender needs those items in order to process your loan, fund and eventually close escrow.  If escrow is held up by the buyer not returning paperwork, the Seller may cancel.

Do NOT change your credit in any way.  Don’t open any new credit cards causing the lender to see an inquiry into your credit.

Do NOT max out credit cards or pay bills late.  You want to keep your debt-to-credit ratio as low as possible while your loan is in process.

Once your home purchase closes escrow you can carry on doing any of the items on the above list at your own discretion.  Once the loan funds and the escrow closes you are clear to live your life!

Your real estate agent will thank you for sticking to these guidelines while your loan is in process.  It is their goal and my goal to complete a smooth transaction on all fronts for our clients.

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Brittney is an expert Transaction Coordinator and 3rd generation real estate fanatic with over 12 years of transaction experience and a background in file management.

CalBRE 01450176

Email Brittney at brittney@signheretransactions.com

signheretransactions.com

Instagram @signheretransactions

Connect with me!

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5 Smart Tips to Survive your Client’s Home Inspection

As I’m sure you know, the Home Inspection is SUPER important….like beyond important.

When your client’s decide to buy a home and move, they want to make sure that the home they’re spending a boatload of money on is in good order…Imagine your client’s dismay when they’ve spent a month or more in escrow and the excitement comes to a screeching halt when they move in and the AC doesn’t work, or the ice maker is dead or worse yet…there’s black fuzzy stuff near the water heater!

Guess what folks…I’m willing to bet that you’ve received THAT dreaded phone call from at least one of your clients before.

Here are some easy tips to help survive your Client’s Home Inspection:

 

  1. Make sure YOU and YOUR CLIENTS attend the inspection and stay the entire time...especially the end when the inspector gives his rundown of his findings.  You might find this incredibly boring but trust me…you don’t want to the one scratching your head when an issue does come up.  This is also a great time to ask questions…any and all questions you or your client can think of.  The inspector will be able to answer and hopefully the Seller’s agent is paying attention and you can use any findings to boost your negotiations during the request for repair stage of your transaction.
  1.  I’m sure you have a great home inspector referral for your clients but don’t push them to use your referral.  It’s important for them to do their own research and find an inspector they are comfortable with.  Here’s one for ya…I did recommend a great Home Inspector to one of my past clients and guess what?  There was a huge issue once the Buyer moved in and who did they blame?  You guessed it!  ME…but hey, we live and we learn.  So take it from me, let your clients choose their own Inspector.
  1. Make sure the weather is cooperating with you.  Ideally it should be clear, sunny and mild outside in order for the Home Inspector to be able to access the entire home.  If it’s pouring cats and dogs outside, your inspector may not be able to get on the roof or inspect areas of the home that they normally would if it were clear out.
  2. Don’t overlook anything!  The dishwasher may be brand new but the connections could be faulty.  Just because something seems legit doesn’t mean it is…take the extra time to ask the inspector these important questions.
  1.  Take notes and jot down any questions you may have for the Sellers and the Seller’s Agent.  Once the inspection is over, you can send these questions to the Seller’s Agent.  Ask them to get answers for you….in writing.  This way, if an issue comes up you have the paper trail.  Hopefully you won’t ever need it but it helps to be detailed in this way IF there was to be an issue.

 

It’s not your job to make sure the home is inspected properly and it’s definitely not your job to be the home inspector but your clients will be better off if you go the extra mile and make sure they are prepared for the inspection.  Think of it this way…you’ve been through these a million times, but it just may be your clients’ first time.  You can help them be smart when it comes to the inspection and potentially save yourself if something ends up going wrong!

Remember folks, there is no such thing as a perfect house.  Every home has it’s own set of quirks so let’s not set out to find perfection!  But what you can do is work smart and prepare yourself and your clients for proper inspection protocol.

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Brittney is an expert Transaction Coordinator and 3rd generation real estate fanatic with over 12 years of transaction experience and a background in file management.

CalBRE 01450176

Email Brittney at brittney@signheretransactions.com

signheretransactions.com

Instagram @signheretransactions

Connect with me!