There's no shortage of advice for anyone buying a home, especially on the internet. And it's okay for homebuyers to seek advice online, especially if they're in the early stages of their search. However, as they get further along in their search, and are in a position to make an offer, they really should consult the trusted advice of the mortgage company they chose. If your clients have chosen Guardian Mortgage, please read on.
If your clients receive conflicting information once the loan process has started, it could cause serious problems – namely, the mortgage application being declined. Having everyone on the same page decreases the chance of anything causing the mortgage application to fall through, and the subsequent disappointment for all parties involved.
To help you give your clients the right advice on what NOT to do during this time, we've compiled the following list of advice from one of our MLOs to share with you. None of it is rocket science, but it is still important that you coach your clients on all of these points. We do our best to share this information as well, but hearing it twice has never hurt anyone, especially in busy and distracting times most clients experience while also trying to buy a home.
Things Not To Do Before Closing
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DON'T change your employment or marital status (if at all possible).
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DON'T make any major purchases (car, furniture, jewelry, etc.).
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DON'T change bank accounts.
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DON'T make any large cash deposits into your bank accounts.
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DON'T transfer any balances from one account to another.
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DON'T close any credit card accounts.
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DON'T consolidate your debt onto one or two credit cards.
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DON'T apply for new credit or open a new credit card.
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DON'T max out or overcharge on your credit card accounts.
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DON'T take out a new loan or co-sign on a loan.
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DON'T finance any elective medical procedure.
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DON'T start any home improvement projects.
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DON'T have your credit pulled or dispute any information on your credit report.
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DON'T pay off any loans or credit cards, charge offs, or collections without discussing it with their Mortgage Loan Originator first.
In a nutshell, we don’t want their credit score to change. This means as your clients do their walk through, and talk about needing to purchase that new washer and dryer for example, remind them to wait on that purchase until after their loan has closed. The truth of the matter is, a change in credit could delay their loan closing, or worst case scenario, lead to it being declined altogether. It's an all-too-common scenario, and one of the best ways to avoid it is keeping everyone involved on the same page, adhering to the same plan.
If you have any questions, or want to seek more tips and advice on how best to coach your clients, please reach out to Guardian Mortgage today to speak with one of our Mortgage Professionals.