In the current mortgage environment, it is crucial to talk to an experienced lender early in the homebuying process.
Here are some common challenges homebuyers could easily avoid with advanced planning and the help of an experienced mortgage lender:
- Making non payroll deposits into bank accounts that are used for funds to close without properly documenting the source of those deposits (If not properly documented those funds are ineligible to be used for down payment or reserves)
- Being removed as an authorized user from accounts that are not their spouse or co-borrowers accounts well enough in advance to avoid expensive credit bureau updates
- Having the word “dispute” 100% removed from a credit report as Fannie Mae has a zero tolerance policy for disputed accounts and removing disputes quickly requires expensive credit bureau updates
- Gift funds being provided in a way other than via personal check
- Understanding what it means when they own another home
- Leaving required income and asset documentation in storage in their departure city
Unfortunately too many homebuyers wait until they find a home they are interested in before seriously talking to a loan originator and learning the easy and simple things they could have been doing to avoid what may become very frustrating and often expensive challenges once they are already in contract to buy a home.