Roadblocks you should avoid when applying for a mortgage

by Laurel Grandle, REALTOR

Loans are harder to get now then in recent years...more lenders are scrutinizing mortgage applications very carefully since the financial crisis fallout, which has triggered lender fears that borrowers will default or walk-away from their mortgage or may even commit mortgage fraud.

Some triggers than may cause a bank to further investigate or even deny credit to an applicant include:

Large deposits of money: Lenders are required to account for any cash gifts for down payments, such as from relatives. So if a borrower earns $5,000 a month and suddenly deposits an extra $10,000 beyond that, lenders may question where the money came from when applying for a loan. They may even ask for verification from the person gifting the buyer, including copies of bank statements from that person as well as the borrower.

The home’s new address: Buyers who are purchasing a property for primary residence that is a three hour drive from where they work may also draw increased scrutiny from lenders. Borrowers may even need a letter from their employer stating that they work from home a few times a week. This is because lenders may want to ensure the borrower plans to be an owner-occupant and is not buying the property to rent out or flip, which must be disclosed.

Signing up for new credit cards: Borrowers should avoid taking on extra debt when applying for a loan — so they may want to wait to buy all the new furniture until AFTER the home CLOSES. Extra debt can be a red flag to a lender and could even jeopardize closing on a new home if the debt pushes the borrower’s total debt levels beyond lender-accepted limits.

When applying for a mortgage loan, work very closely with your loan officer. Take their advice and produce all your documents in a timely manner...AND DON'T BUY ANYTHING THAT COULD AFFECT YOUR ABILITY TO PURCHASE YOUR HOME!!

visit my web site: http://www.LaurelGrandle.com. You can begin the search for your perfect home right there!

Laurel Grandle sells homes throughout the East TN Area, including Knoxville, Karns, Farragut, Halls, Powell, Loudon County, Knox County. She specializes in Lake homes, Luxury homes, Historic homes, New Constructionand is an expert at matching buyers with the right house, regardless of the area or price range, she has over 25 years of experience and has helped thousands of clients with their real estate needs.

Here is what some of her clients have said about her recently, “Laurel has an unlimited amount of patience. My family has very specific needs and she understood them and worked with us until we found the perfect home at the right price. I don’t think anyone else would have done that for us and we’ll always be thankful we found her and worked with her. She’s wonderful!” Margo

“Laurel has accommodated us on many occasions very quickly, as our schedules change all the time. She was always understanding of the time and date changes and she helped us find a great house.” Williams

“Thank you! It's wonderful having you as our agent and we both think you're a terrific person. Bob was right when he said we'd love you.” Joe

“Laurel really knows the area and the market. She didn’t waste any time…she showed us what we ask for in the location we wanted and made the whole move a very good experience for our family”. Robert

“Before we wrote an offer, Laurel did a detailed market analysis for us and discussed it with us so we understood what a fair price would be. She went over the entire contract in detail and clarified everything for us. We purchased with confidence and we’d never use anyone else IF we ever decide to sell!” Anne

Exit Realty Knoxville (each office independently owned and operated) is your number one resource for all your real estate needs, including listing, sales, referrals; our EXIT agents are committed to serving you—put us to work for you: 865 389 2551

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