Credit rules some new Changes
Dear: Home Buyer
Because of the many changes in the new finance rules, there are several things that can negatively affect your ability to close your loan. Keep these in mind as we proceed. Many banks will check your credit score right before they release funds for the closing if your credit score has gone down they will not fund the loan. You could lose ALL of your deposits. They ALL check your job status a day or two before closing.
• DO NOT get mad at your boss say something stupid and lose your job, you need your job to get the loan and to pay it after you get it.
• DO NOT change jobs without inquiring about the impact this change could have on the approval/ approvability of your mortgage loan. Please call your mortgage person first.
• DO NOT open or increase any liabilities, including credit cards, signature loans, etc., during the loan process. This could have a major impact on your credit score. It would be very best not to use your credit all while we are going through this time. After you move in to your new there will be plenty of time to spent money.
• DO NOT make major purchases during or prior to closing, no new car loans, store credit (i.e., new car, furniture, appliances, electronics) because this might impact your qualification ratios. Please call your mortgage person to calculate what your ratios would be with any additional debts.
• DO NOT obtain and/or deposit sums of money over $500. FNMA/HUD guidelines require documentation as to the source of these funds (i.e., copy of bonus check, copy of tax refund, copy of insurance settlement, gift letter with copy of check and deposit slips, etc.) piles and piles of paper work.
• DO NOT close/open or transfer any asset accounts without inquiring about the proper documentation required for our loan file (i.e., if you transfer all the funds in your stock account to your savings account, documentation is required).
So what should you do?
If you get a large check from any source deposit it in ONE account DO NOT split the deposit into several accounts, DO NOT deposit half into one account and take the rest in cash. You need a paper trail.
• DO keep originals of all pay stubs, bank statements, and other important financial documentation. We are required to update any documents that are over 30 days old prior to the closing of your mortgage loan (this is required even if your loan is approved).
• DO provide all documentation for the sale of your current home (i.e., sales contract, closing statement, employer relocation/buyout program).
• DO notify me and your mortgage person if you plan to receive gift funds.
• DO notify me and your mortgage person of any employment changes (i.e., change of employer; recent raise/promotion; change of pay status, such as salary to commission, etc.).
When closing time comes, anyone who is going to be listed on title (even if they are not on the loan) must attend the loan closing. You will be required to show identification so bring a copy of your driver’s license with you.
Any funds required to close must be in the form of a cashier’s check made out to the Bank or title company. You should know the exact amount for the check a few days before closing.
If there is any doubt in your mind regarding what to do, please call me or your mortgage person. Let my experience work for you. Thanks for placing your trust in me and I look forward to serving you and your friends.
Sincerely,
Terry Twombly
Agent for Jack Conway
508-212-6511
