Dan Williams of Director’s Mortgage in Bend, Oregon talks with Karen about mistakes buyers make when trying to close a home loan.
Karen Malanga: Hi, this is Karen Malanga with another episode of House Talk. And again, I’m location here at Trailside. I have one of our most terrific mortgage lenders here with me, Dan Williams.
And the reason, Dan, that I have you here today is we had a situation where one of our buyers went out and bought a car the day before closing. It wreaked havoc with the loan, but you were able to pull it off. But I thought it would be good for our listeners to just get a quick list on what not to do while you’re in a mortgage situation.
Dan Williams: Great, yeah. There’s some definite do’s and dont’s. But one of the main things is to avoid doing things that are going to impact your credit. So, even getting a credit check is going to impact your scores.
Dan: What a lot of people don’t realize is that before a loan funds, all the way through the process right at the end, there’s another check done. And we’re looking to see did you open new credit lines, did you take on new debts because there are multiple things that happen. Your scores drop. Your debt-to-income ratios go up. What does that mean? That means that you have more payments that you have to make on the same amount of income. And that can disqualify you from getting that same loan.
So, the biggest thing you want to do is avoid credit checks, new debts. Don’t change jobs.
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Karen: Don’t change your job. Wait to buy the new furniture until after you close.
Dan: Don’t go buying a new washer and dryer because you know you’re moving into this home.
Karen: You’re all excited.
Dan: Wait until after you own the home to buy anything to do like that.
And then, keep your job the same. Do not put in big, large, crazy deposits into your account that we’re not aware of. Those are the basic big picture things that can impact you right through that process at the end.
Karen: Okay! So Dan, thank you so much. Can you let our listeners know the best way to get a hold of you?
Dan: Yes! My best number is 541-668-3053. My email is dwilliams@DirectorsMortgage.net.
Karen: Thank you again.
Dan: Thank you!